Monday, April 18, 2011

Navratna - Wikipedia, the free encyclopedia

 

Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997 as its most prestigious, which allowed them greater autonomy to compete in the global market.[1] The number of PSEs having Navratna status has been raised to 16,[2] the most recent addition being Oil India Limited.

PSU companies are divided into three categories:

  • Maharatna
  • Navratna
  • Miniratna CPSEs
    • Category I
    • Category II

Originally, the term Navaratna meant a talisman or ornament composed of nine precious gems. Later, this symbology was adopted in the courts of Emperor Vikramaditya and the Mughal emperor Akbar, where the Navaratnas were a group of nine extraordinary men in their respective courts.

Maharatna status

In 2009, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore.[3] The Maharatna firms would now be free to decide on investments up to 15 per cent of their net worth in a project.

Earlier, the Navaratna companies could invest up to Rs 1,000 crore without government approvals.

Criteria

In order to qualify as a Maharatna, the process is bottoms up. This means the lowest employee should be proud of his/her company and contribute to the same according to the global standards. The 6 point criteria for eligibility as Maharatna are:

  1. Having Navratna status.
  2. Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
  3. An average annual turnover of more than Rs. 20,000 [4]crore during the last 3 years.
  4. An average annual net worth of more than Rs. 10,000[5] crore during the last 3 years.
  5. An average annual net profit after tax of more than Rs. 2,500 crore during the last 3 years.
  6. Should have significant global presence/international operations.[6]
List of Maharatna
  1. Coal India Limited [7]
  2. Indian Oil Corporation Limited [8]
  3. NTPC Limited [9]
  4. Oil and Natural Gas Corporation Limited [10]
  5. Steel Authority of India Limited [11]

For the talisman, set of stones and gems, see Navaratna. For the well-known navratnas of Akbar and Vikramaditya's courts, see Nine Gems.

Navratna status

Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997 as its most prestigious, which allowed them greater autonomy to compete in the global market.[12] The number of PSEs having Navratna status has been raised to 16,[13] the most recent addition being Neyveli Lignite Ltd [14].

Miniratnas status

In addition, the government created another category called Miniratna. Miniratnas can also enter into joint ventures, set subsidiary companies and overseas offices but with certain conditions. In 2002, there were 61 government enterprises that were awarded Miniratna status. However, at present, there are 63 government enterprises that were awarded Miniratna status.

[edit] Category I

This designation applies to PSEs that have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years. These miniratnas granted certain autonomy like incurring capital expenditure without government approval up to Rs. 500 crore or equal to their net worth, whichever is lower.

[edit] Category II

This category include those PSEs which have made profits for the last three years continuously and should have a positive net worth. Category II miniratnas have autonomy to incurring the capital expenditure without government approval up to Rs. 300 crore or up to 50% of their net worth whichever is lower.

50. Bharat Pumps & Compressors

51. Broadcast Engineering Consultants (I) Limited

52. Central Mine Planning & Design Institute Limited

53. Educational Consultants (I) Limited

54. Engineering Projects (I) Limited

55. Ferro Scrap Nigam Limited

56. HMT (International) Limited

57. HSCC (India) Limited

58. India Trade Promotion Organization

59. Indian Medicines Pharmaceuticals Corporation Limited

60. M E C O N Limited

61. National Film Development Corporation Limited

62. P E C Limited

63. Rajasthan Electronics & Instruments Limited

Navratna - Wikipedia, the free encyclopedia

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