Categorisation Procedure and Privileges of Maharatna, Navratna and Miniratna

Ques.15. Name the List of Maharatna Companies giving parameters of Maharatna, Navratna and Miniratna.

Ans. Presently there are 7 Maharatna companies which are listed as under –

#Bharat Heavy Electricals Limited.

#Coal India Limited 

#GAIL (India) Limited.

#Indian Oil Corporation Limited.

#NTPC Limited.

#Oil and Natural Gas Corporation Limited 

#Steel Authority of India Limited

There are 17 Navratna, 54 Miniratna Category I and 18 Miniratna Category II Central Public Sector Enterprises.

Eligibility criteria for being Maharatna – 

(a) Annual profit of more than Rs 5000 crore for the last 3 years.

(b) Average annual net worth of Rs 15,000 crore for the last 3 years.

(c) Average annual turnover of Rs 25000 crore for the last 3 years.

Eligibility criteria for being Navratna –

(a) For being a Navratna company, a company must first have a Miniratna status and should have 4 independent directors on its board.

(b) Should have a score of 60 out of 100 which are calculated on the basis of below some parameters – Net worth, Net profit, Total manpower cost, total cost of production, cost of services, capital employed, PBDIT (Profit before Depreciation, Interest and Taxes) etc.

Eligibility criteria for being Miniratna Category I

Should have made profits consistently for the last 3 years or have earned a net profit of 30 crores or more in one of the three years.

Eligibility criteria for being Miniratna Category II

Should have made profits consistently for the last 3 years and should also have a positive net worth.

Financial autonomy status of different Central Public Sector Enterprises –

Maharatna- Can invest from Rs 1000 crores to 5000 crores or they are free to make decision on investments which are upto 15% of their net worth in a project.

Navratna – Can invest upto Rs 1000 crores or 15% of their net worth on a single project or 30% of net worth in the whole year with the exception that this amount should not exceed Rs 1000 crores.

Miniratna Category I – Can invest upto an amount of Rs 500 crores or an amount which is equivalent to their net worth, whichever is lower of the two.

Miniratna Category II – Can invest upto Rs 300 crores or upto 50% of their net worth, whichever is lower of the two.