UNIT 2

Micro, Small & Medium Enterprises have been defined in accordance with the provision of
Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. MSME are broadly
classified in two Classes:
1. Manufacturing Enterprises- all enterprises engaged in the manufacturing or production of
goods pertaining to any industry specified in the first schedule to the industries (Development
and regulation) Act, 1951) or employing plant and machinery in the process of value addition to
the final product having a distinct name or character or use.
2. Service Enterprises:-The enterprises engaged in providing or rendering of services.
In India the MSME have been further classified on the basis of investment in plant and
machinery. The limit for investment in plant and machinery / equipment for manufacturing /
service enterprises, have been notified, by the government as under:

MANUFACTURING SECTOR
Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed twenty five lakh rupees

Small Enterprises More than twenty five lakh rupees but does not exceed five crore
rupees

Medium More than five crore rupees but does not exceed ten crore rupees
Enterprises

SERVICE SECTOR
Enterprises Investment in equipments

Micro Enterprises Does not exceed ten lakh rupees:

Small Enterprises More than ten lakh rupees but does not exceed two crore rupees

Medium Enterprises More than two crore rupees but does not exceed five crore rupees

In western countries the classification is based on number of employees employed and not the
investment in plant and machinery. It is as under
MICRO < 10 PERSONS
SMALL < 50 PERSONS
MEDIUM < 250 PERSONS
The Micro- Small and Medium Enterprises (MSMEs) are small sized entities, defined in terms of
their size of investment. They are contributing significantly to output, employment export etc. in
the economy. They perform a critical role in the economy by providing employment to a large
number of unskilled and semi-skilled people, contributing to exports, raising manufacturing
sector production and extending support to bigger industries by supplying raw material, basic
goods, finished parts and components, etc.

              As per the ‘MSME at a Glance’ Report of the Ministry of MSMEs, the sector consists of
36 million units and provides employment to over 80 million persons. The Sector produces more
than 6,000 products contributing to about 8% of GDP besides 45% to the total manufacturing
output and 40% to the exports from the country.

To generate large scale employment

In India, capital is scarce and labor abundant. MSMEs are thought to have lower capital-output
and capital-labour ratios than large-scale industries, and therefore, better serve growth and
employment objectives. The MSME sector in India has grown significantly since 1960 – with an
average annual growth rate of 4.4% in the number of units and 4.62% in employment (currently
employing 30 million). Not only do MSMEs generate the highest employment per capita
investment, they also go a long way in checking rural-urban migration by providing people living
in isolated areas with a sustainable source of employment.

To sustain economic growth and increase exports

Non-traditional products account for more than 95% of the MSME exports (dominating in the
export of sports goods, readymade garments, plastic products etc.). Since these products are
mostly handcrafted and hence eco-friendly, there exists a tremendous potential to expand the
quantum of MSME led exports. Also, MSMEs act as ancillary industries for Large Scale
Industries providing them with raw materials, vital components and backward linkages e.g. large
scale cycle manufacturers of Ludhiana rely heavily on the MSMEs of Malerkotla which produce
cycle parts.

Making Growth Inclusive

MSMEs are instruments of inclusive growth which touch upon the lives of the most vulnerable
and marginalized. For many families, it is the only source of livelihood. Thus, instead of taking a
welfare approach, this sector seeks to empower people to break the cycle of poverty and
deprivation. It focuses on people’s skills and agency. However, different segments of the MSME
sector are dominated by different social groups

Evolution and Performance of the MSME Sector in India

Pre-Liberalization
● During the post-Independence period, small firms were expected to play an important role
in the development process, especially in absorbing surplus labor and achieving an
 equitable income distribution. This is the traditional stylized role assigned to small
industries.
● At the beginning of the industrialization process, flexibility in production and the ability to
offer differentiated products allow smaller firms to grow rapidly.
● Later, large-scale firms come to dominate the size distribution, making up a greater share of
output, employment, and value-added because of scale economies, managerial efficiency,
better access to finance and infrastructure, and a favorable tariff structure.
Post-Liberalization
● The growth rate of MSME, on an average, has declined considerably in terms of units and
even employment but has improved marginally in terms of output and exports, in the
post-liberalization period compared to the pre-liberalization period.
● This could be probably due to – (a) With the threat of competition, new MSME units would
not have come up as significantly in the liberalization period as compared to the
pre-liberalization period (b) The new MSME units that came up after liberalization may have
been much more capital intensive than those that have come up in the past – with some
proportions of the existing MSME units having modernized themselves to rely less on
labour and also to take advantage of developments in the global market (c) Unable to face
the competition some MSMEs exited the market, thereby affecting MSME employment and
output initially.
● However, though it appears that the MSME growth performance (in terms of employment,
output, and exports) might have suffered initially but it has been able to recover
impressively subsequently in the decade of 2000s.
● The share of the registered MSMEs in India’s GDP more than doubled during this period
and its share in total organized sector employment increased to 34% during the same
period. Although the share of registered MSME exports declined sharply initially, it bounced
back to 12% in 2006-07.
● The improved economic health of registered MSME sector is reflected in another parameter
i.e. industrial sickness. Sickness in the registered MSME sector has declined both
absolutely and relatively. This may be the outcome of improvements in management
deficiencies, insufficient financial control, research and development, obsolete technology,
inadequate demand, shortage of raw materials, infrastructure bottlenecks, etc.
● There are two more issues concerning MSME performance:
1. Ancillarisation – the promotion of inter-firm linkages between large firms and MSME
through subcontracting and ancillarisation in both public and private sectors has been an
important dimension of India’s MSME policy. Any growth of ancillarisation and
sub-contracting would be advantageous to the MSME sector by way of assured marketing,
covered technical assistance, finance, and supply of raw materials and training. During this
period the percentage of ancillary units increased from 5 percent. Note that however a
significant proportion of MSME subcontracting and ancillarisation are informal in nature.
The growing inter-firm linkages, formal as well as informal, would have benefited the
economic performance of MSME sector.
2. The degree of internationalization – world over, an export strategy has been the primary
foreign market entry mode adopted by MSMEs in their internationalization efforts – this has
been observed in the Indian context as well. At the national level, several factors
contributed to the increasing trend of MSME internationalization like – structural shift in the
composition of MSME exports from traditional to non-traditional items, modes of entry such
as MNCs and e-Commerce etc.

CHALLENGES OF MSME

Small and Medium Enterprises (SMEs) play a vital role for the growth of Indian economy by
contributing 45% of industrial output, 40% of exports, employing 60 million people, create 1.3
million jobs every year and produce more than 8000 quality products for the Indian and
international markets. SME’s Contribution towards GDP in 2011 was 17% which is expected to
increase to 22% by 2012. There are approximately 30 million MSME Units in India and 12
million persons are expected to join the workforce in the next 3 years.

Despite of the importance of the MSMEs in Indian economic growth, the sector is facing
challenges and does not get the required support from the concerned Government
Departments, Banks, Financial Institutions and Corporates which is proving to be a hurdle in the
growth path of the MSMEs. The list of the problems that are faced by existing/new companies in
SME sector are as under:

1. Absence of adequate and timely banking finance

2. Limited capital and knowledge
3. Non-availability of suitable technology
4. Low production capacity
5. Ineffective marketing strategy
6. Constraints on modernisation & expansions
7. Non availability of skilled labour at affordable cost
8. Follow up with various government agencies to resolve problems due to lack of man power
and knowledge etc.

It is very important to empower the SME sector to utilize the limited resources (human &
economic) they have in an optimum manner. The SMEs need to be educated and informed of
the latest developments taking place globally and helped to acquire skills necessary to keep
pace with the global developments. SMEs are now exposed to greater opportunities than ever
for expansion and diversification across the sectors. Indian market is growing rapidly and Indian
entrepreneurs are making remarkable progress in various Industries like Manufacturing,
Precision Engineering Design, Food Processing, Pharmaceutical, Textile & Garments, Retail, IT
and ITES, Agro and Service sector.

To counter the challenges faced by SME sector and grab the opportunities in the market, the
Chamber has developed key strategies to promote and support the SME sector. The Chamber
encourages SMEs to adopt innovative ideas and concepts for the promotion of their business.
The goal of the Chamber is to organise Seminars, Conferences, Workshops and Training
Programs and other trade promotional activities to educate & create awareness amongst the
SMEs. CIMSME has decided to start various activities to empower and educate the SME Sector
by organising various trade promotional activities

ROLE OF SME IN DEVELOPING ECONOMIES

SMEs plays an important role in the economic development of a country. Their role in terms of
production, employment generation, contribution to exports & facilitating equitable distribution of
income is very critical. The SMEs broadly consists of:

1) The traditional cottage & household industries such as village industries, handicrafts, and coir
industries.

2) Modern SMEs.

The traditional village and cottage industries as distinguished from modern SMEs are mostly
unorganized and located in rural areas and semi urban areas. They normally do not use power
operated machines/appliances & use relatively lower levels of investment & technology. But they
provide part time employment to a very large number of poorer sections of the society. They
also supply essential products for mass consumption & exports.

The modern SMEs are mostly defined in terms of the size of investment & labour force. The
industries (Development & Regulation) defines, SMEs having less than 50 workers with the aid
of power or less than 50 workers with the aid of power.

Government is extending various steps towards SMEs. In addition, the SMEs has been
supported and encouraged by various government policies for infrastructure support, technology
up-gradation, preferential access to credit, preferential policy support, etc.

Specific Contributions of Small Scale Sector:

1. The contribution of Small scale sector to the manufacturing sector and GDP as a whole is
significant in terms of its share in total value added.

2. Small scale sector performs to the manufacturing sector and GDP as a whole is significant in
terms of its share in total value added.

3. SMEs can play a role in mitigating the problem of imbalance in the balance of payment
accounts through its export promotion.

4. While the large scale industries are expected to increase the inequities of income and
concentration of wealth, SMEs are expected to help widespread equal distribution of income
and wealth.

5. Small sector may provide opportunities to a large number of capable and potential
entrepreneurs who are deprived of appropriate opportunities.
 6. It can help to release scarce capital towards productive use.

7. SMEs can reap the benefits of lean production and can find new cost-efficient techniques of
lean production.

8. As small units can use resources more efficiently to the full capacity without any wastage,
they may have higher allocation efficiency.

9. As the element of risk is low in SMEs, more resources will be employed by large number of
labor force.

PUBLIC SECTOR

At the time of independence, India was backward and underdeveloped – basically an agrarian
economy with weak industrial base, high rate of unemployment, low level of savings and
investment and near absence of infrastructural facilities. Indian economy needed a big push.
This push could not come from the private sector because of the lack of funds and their inability
to take risk with large long-gestation investments. As such, government intervention through
public sector was necessary for self-reliant economic growth, to diversify the economy and to
overcome economic and social backwardness.
OBJECTIVES: The public sector aims at achieving the following objectives:

i. To promote rapid economic development through creation and expansion of infrastructure

ii. To generate financial resources for development
iii. To promote redistribution of income and wealth
iv. To create employment opportunities
v. To promote balanced regional growth
vi. To encourage the development of small-scale and ancillary industries, and
vii. To promote exports on the one side and import substitution, on the other.

Role of Public Sector: The public sector has been playing a vital role in the economic
development of the country. Public sector is considered a powerful engine of economic
development and an important instrument of self-reliance. The main contributions of public
enterprises to the country's economy may be described as follows: 

1. Filling the Gaps in Capital Goods: At the time of independence, there existed serious gaps
in the industrial structure of the country, particularly in the fields of heavy industries such as
steel, heavy machine tools, exploration and refining of oil, heavy Electrical and equipment,
chemicals and fertilizers, defense equipment, etc. Public sector has helped to fill up these gaps.
The basic infrastructure required for rapid industrialisation has been built up, through the
production of strategic capital goods. In this way the public sector has considerably widened the
industrial base of the country.
2. Employment: Public sector has created millions of jobs to tackle the unemployment problem
in the country. Public sector accounts for about two-thirds of the total employment in the
organised industrial sector in India. By taking over many sick units, the public sector has
protected the employment of millions. Public sector has also contributed a lot towards the
improvement of working and living conditions of workers by serving as a model employer.

3. Balanced Regional Development: Public sector undertakings have located their plants in

backward and untrodden parts of the county. These areas lacked basic industrial and civic
facilities like electricity, water supply, township and manpower. Public enterprises have
developed these facilities thereby bringing about complete transformation in the socio-economic
life of the people in these regions. Steel plants of Bhilai, Rourkela and Durgapur; fertilizer
factory at Sindri, are few examples of the development of backward regions by the public
sector. 

4. Contribution to Public Exchequer: Apart from generation of internal resources and

payment of dividend, public enterprises have been making substantial contribution to the
Government exchequer through payment of corporate taxes, excise duty, custom duty etc. In
this way they help in mobilizing funds for financing the needs for the planned development of
the country. In recent years, the total contribution from the public enterprises has increased
considerably, between the periods 2002-03 to 2004-05 the contribution increased by Rs 81,438
crores on the average.
5. Export Promotion and Foreign Exchange Earnings: Some public enterprises have done
much to promote India’s export. The State Trading Corporation (STC), the Minerals and Metals
Trading Corporation (MMTC), Hindustan Steel Ltd., the Bharat Electronics Ltd., the Hindustan
Machine Tools, etc., have done very well in export promotion. The foreign exchange earnings of
the public sector enterprises have been rising from Rs 35 crores in 1965-66 to Rs 42,264 crores
in 2004-05.
6. Import Substitution: Some public sector enterprises were started specifically to produce
goods which were formerly imported and thus to save foreign exchange. The Hindustan
Antibiotics Ltd., the Indian Drugs and Pharmaceuticals Ltd. (IDPL), the Oil and Natural Gas
Commission (ONGC), the Indian Oil Corporation Ltd., the Bharat Electronics Ltd., etc., have
saved foreign exchange by way of import substitution.
7. Research and Development: As most of the public enterprises are engaged in high
technology and heavy industries, they have undertaken research and development programmes
in a big way. Public sector has laid strong and wide base for self-reliance in the field of technical
know-how, maintenance and repair of sophisticated industrial plants, machinery and equipment
in the country. Through the development of technological skill, public enterprises have reduced
dependence on foreign knowhow. With the help of the technological capability, public sector
undertakings have successfully competed in the international market.
In addition to the above, the public sector has played an important role in the achievement of
constitutional goals like reducing concentration of economic power in private hands, increasing
public control over the national economy, creating a socialistic pattern of society, etc. With all its
linkages the public sector has made solid contributions to national self-reliance.
Limitations OR Problems: Despite their impressive role, Public enterprises in
India suffer from several problems and shortcomings. Some of these are described below: 

1. Poor Project Planning: Investment decisions in many public enterprises are not based upon
proper evaluation of demand and supply, cost benefit analysis and technical feasibility. Lack of a
precise criterion and flaws in planning have caused undue delays and inflated costs in the
commissioning of projects. Many projects in the public sector have not been finished according
to the time schedule.
2. Over-capitalization: Due to inefficient financial planning, lack of effective financial control
and easy availability of money from the government, several public enterprises suffer from
over-capitalization The Administrative Reforms Commission found that Hindustan Aeronautics,
Heavy Engineering Corporation and Indian Drugs and Pharmaceuticals Ltd were
over-capitalized. Such over-capitalization resulted in high capital-output ratio and wastage of
scare capital resources. 

3. Excessive Overheads: Public enterprises incur heavy expenditure on social overheads like

townships, schools, hospitals, etc. In many cases such establishment expenditure amounted to
10 percent of the total project cost. Recurring expenditure is required for the maintenance of
such overhead and welfare facilities. Hindustan Steel alone incurred an outlay of Rs. 78.2 crore
on townships. Such amenities may be desirable but the expenditure on them should not be
unreasonably high. 

4. Overstaffing: Manpower planning is not effective due to which several public enterprises like
Bhilai Steel have excess manpower. Recruitment is not based on sound labour projections. On
the other hand, posts of Chief Executives remain unfilled for years despite the availability of
required personnel.
5. Under-utilisation of Capacity: One serious problem of the public sector has been low
utilisation of installed capacity. In the absence of definite targets of production, effective
production planning and control and proper assessment of future needs many undertakings
have failed to make full use of their fixed assets. There is considerable idle capacity. In some
cases productivity is low on account of poor materials management or ineffective inventory
control.
6. Lack of a Proper Price Policy: There is no clear-cut price policy for public enterprises and
the Government has not laid down guidelines for the rate of return to be earned by different
undertakings. Public enterprises are expected to achieve various socio-economic objectives and
in the absence of a clear directive, pricing decisions are not always based on rational analysis.
In addition to dogmatic price policy, there is lack of cost-consciousness, quality consciousness,
and effective control on waste and efficiency.
7. Inefficient Management : The management of public enterprises in our country leaves much
to be desired. Managerial efficiency and effectiveness have been low due to inept management,
uninspiring leadership, too much centralisation, frequent transfers and lack of personal stake.
Civil servants who are deputed to manage the enterprises often lack proper training and use
bureaucratic practices. Political interference in day-to-day affairs, rigid bureaucratic control and
ineffective delegation of authority hamper initiative, flexibility and quick decisions. Motivations
and morale of both executives and workers are low due to the lack of appropriate incentives.

FORMS OF PUBLIC ENTERPRISES

The organisation provides the framework, which substantially shapes interrelationships amongst
the public enterprises as well as the government. The following are the major organisational
forms of the public enterprises.

(a) Departmental Organisation

It was, at one point of time, the prominent form of organisation of the public enterprises for two
reasons. First, it was easy for a government to create an enterprise within the organisational
framework of one of its already existing departments. Secondly, in the initial stages of
developmental planning, the number of such enterprises with commercial functions was small.

The major characteristics of Departmental enterprises are

(a) The enterprise is financed by annual appropriation from the treasury and all or major share
of its revenues are paid into the treasury.
(b) The enterprise is subject to budget accounting and audit controls applicable to other
government activities.
(c) The permanent staffs of the enterprise are civil servants, the method by which they are
recruited and the conditions of service under which they are employed are ordinarily the same
as for other civil servants.
(d) The enterprise is generally organised as a major sub-division of one of the central
government departments and is subject to direct control of the need of the department.
(e) Wherever this applies in the legal system of the country concerned, the enterprise
possesses the sovereign immunity of the state and cannot be sued without the consent of the
government.

(b) Public Corporation

According to F.D. Roosevelt, the President of USA, it is an autonomous form of the organisation
"clothed with the power of the government, but possessed with the flexibility and initiative of
private enterprise". Public Corporation may be understood in general terms as an autonomous
commercial organisation established at government's insistence outside the framework of
government department and company legislation.

1. It is generally created by, or pursuant to, a special law defining its powers, duties, and
immunities and prescribing the form of the management its relationship to established
departments and ministries.

2. As a corporate body it is a separate entity for legal purposes and can sue and be sued, enter
into contract and acquire property in its own name.
3. Except for appropriations to provide capital or to cover losses, a public corporation is usually
independently financed.

4. It is generally exempted from most regulatory and propitiatory statues applicable to

expenditure of public funds.

5. It is ordinarily not subject to budget accounting and audit laws and procedure applicable to no
corporate agencies.

6. In majority of cases, employees of public corporations are not civil servants and they are
recruited and remunerated under terms and conditions, which the corporation itself determines.

7. It may not be wholly owned by the State.

8. Every public corporation need not be the result of a special enactment.

9. Some of the restrictive regulations applicable to government departments' expenditures and

the audit system can also be imposed on public corporations.

10. Some of the employees of public corporations, especially at the top level, may be from the
civil services.

(c) Government Company

The joint stock company is another organisational form of public enterprises. The 'company
form' which may also be called a 'government company' is described in many countries as an
enterprise registered under the Companies Act of the land in which the government and/or
public enterprises hold at least 51 per cent of equity capital.

Advantages of Government Companies are as follows.

1. A government company is far easier to constitute than a public corporation, which requires
specific legislation, while only seven signatories of the memorandum and articles of association
are required to get a company, registered under the Companies Act in India.

2. The company form enables the government to diversify its ownership in the company by
either selling or buying equity shares. It can easily transfer the company to private sector by
simply reducing its share capital to less than 50 per cent.

3. The creation of a company form of public enterprise suggests the government's will to allow
the public enterprise to work under the same set of law as those applying to private sector
enterprise.

4. The company form of organisation of public enterprise gives certain conveniences to

government as far as its relationship with the enterprise is concerned.

(d) Joint Enterprise
State participation in an economic activity along with the private sector has led to the creation of
a specific type of organisational form, which is known as joint enterprise.

Factors responsible for the emergence of Joint Enterprises

1. Government's will to set up joint enterprises with private sector may be in either of the
following situations:

(a) Lack of initiative to participate in the private enterprises which can be secured by

government's participation; or
(b) Government wants to conserve its limited resources and invite private capital so that the
government can extend its coverage to more fields in the public sector.

2. The government's decision to enter into partial ownership of a going private enterprise may
occur in the following situations:

(a) For conversion of loans of the private sector into equity capital

(b) For regulating the monopolistic operations or public interest potentials of a private
enterprise;
(c) For overcoming the 'sickness' or 'mismanagement' of a private enterprise
(d) For governing profit in case of a private enterprise;
(e) For continuation of previous management, in case of nationalisation of private enterprise;
and
(f) For limiting cost compensation, in case of nationalisation of foreign private enterprise. There
has been a progressive increase in the number of joint enterprises the world over, especially in
the wake of privatisation wave.
(e) Development Corporation

It is difficult to exactly define 'Development Corporation'. On the basis of empirical evidence

world over, especially in the developing countries, it may signify an autonomous agency in the
public sector, primarily to promote, rather than to operate, economic activities through a system
of subsidizing. The promotional activity of a Development Corporation is as follows.

(1) It promotes an activity which otherwise might not come into existence.

(2) It accelerates an activity which otherwise would materialize at a slow pace in small outputs
and in a sect orally unbalanced manner.

(3) It promotes a desired pattern of economic activity, meaning thereby the expansion of desired
sector of activity, promotion of units of desired sizes, attainment of desired balance of payments,
development of certain economic activity in the desired region, etc.

PSE and PSU

If a Government Company is registered under Companies Act,1956 or Banking Act, it is Public
Sector Enterprises (PSE). These are predominantly owned by Government and which are
 managed by a Government appointed Chairman and Managing
Director.Ex-SBI,BHEL,ONGC,ITDC hotels

Public Sector undertakings refer to commercial ventures (registered under separate act of
Parliament) of the Government where user fees are charged for services rendered. The
tariff/fees may be market based or subsidised. They are usually fully owned and managed by
the Government such as Railways, Posts, Defence Undertakings, Banks etc.

To provide additional autonomy to Public sector enterprises there is a system of classifying the
PSU in Maharatna Navratna and Miniratna I and II. The Guidelines for awarding Ratna[11] status
are as In India to provide follow:

Miniratna Miniratna
Maharatna Navratna
Category-I Category-II

Three years with an A score of 60 (out of 100),

average annual net based on six parameters
profit of over Rs. which include net profit, net
5000 crore, OR worth, total manpower cost,
Have made profits
total cost of production, cost Have made
continuously for
Average annual Net of services, PBDIT (Profit profits
the last three years
worth of Rs. 10,000 Before Depreciation, Interest continuously for
Eligibility or earned a net
crore for 3 years, OR and Taxes), capital the last three
profit of Rs. 30
Average annual employed, etc., AND years and should
crore or more in
Turnover of Rs. have a positive
A company must first be a one of the three
20,000 crore for 3 net worth.
Miniratna and have 4 years
years (against Rs independent directors on its
25,000 crore board before it can be made
prescribed earlier)[12] a Navratna.

Rs. 1,000 crore - Rs.

up to Rs. 1,000 crore or 15% up to Rs. 300
5,000 crore, or free up to Rs. 500 crore
of their net worth on a single crore or up to
Benefits for to decide on or equal to their
project or 30% of their net 50% of their net
investment investments up to net worth,
worth in the whole year (not worth, whichever
15% of their net whichever is lower.
exceeding Rs. 1,000 crores). is lower.
worth in a project
As on 13 September 2017 there are 8 Maharatnas, 16 Navratnas and 74 Miniratnas.There are
nearly 300 CPSEs (central public sector enterprises) in total.
List of Maharatna

1. Bharat Petroleum Corporation Limited(BPCL)

2. National Thermal Power Corporation(NTPC)
3. Oil and Natural Gas Corporation(ONGC)
4. Steel Authority of India Limited(SAIL)
5. Bharat Heavy Electricals Limited(BHEL)
6. Indian Oil Corporation Limited(IOCL)
7. Coal India Limited(CIL)
8. Gas Authority of India Limited(GAIL)

List of Navratna

1. Bharat Electronics Limited (BEL)

2. Container Corporation of India (CONCOR)
3. Engineers India Limited (EIL)
4. Hindustan Aeronautics Limited (HAL)
5. Hindustan Petroleum Corporation Limited (HPCL)
6. Mahanagar Telephone Nigam Limited (MTNL)
7. National Aluminium Company (NALCO)
8. National Buildings Construction Corporation (NBCC)
9. National Mineral Development Corporation (NMDC)
10. Neyveli Lignite Corporation
11. Oil India Limited (OIL)
12. Power Finance Corporation
13. Power Grid Corporation of India Limited
14. Rashtriya Ispat Nigam Limited
15. Rural Electrification Corporation
16. Shipping Corporation of India (SCI)
List of Miniratna-I

1. Airports Authority of India (AAI)

2. Antrix Corporation
3. Balmer Lawrie
4. Bharat Coking Coal Limited
5. Bharat Dynamics Limited
6. Bharat Earth Movers
7. Bharat Sanchar Nigam Limited (BSNL)
8. Bridge and Roof
9. Central Warehousing Corporation
10. Central Coalfields Limited
11. Chennai Petroleum Corporation
12. Cochin Shipyard
13. Dredging Corporation of India
14. Educational Consultants India
15. Kamarajar Port
16. Garden Reach Shipbuilders & Engineers
17. Goa Shipyard
18. Hindustan Copper
19. HLL Lifecare
20. Hindustan Newsprint
21. Hindustan Paper
22. Housing and Urban Development Corporation
23. HSCC
24. India Tourism Development Corporation
25. India Trade Promotion Organisation
26. Indian Rare Earths
27. Indian Railway Catering and Tourism Corporation
28. Indian Renewable Energy Development Agency
29. Ircon International
30. Kudremukh Iron Ore Company
31. Mazagaon Dock Limited
32. Mahanadi Coalfields
33. MOIL
34. Mangalore Refinery and Petrochemicals Limited
35. Mishra Dhatu Nigam
36. MMTC Ltd.
37. MSTC Ltd.
38. National Fertilizers
39. National Small Industries Corporation Limited
40. National Seeds Corporation
41. NHPC Ltd.
42. Northern Coalfields
43. North Eastern Electric Power Corporation Limited
44. Numaligarh Refinery
45. ONGC Videsh
46. Pawan Hans
47. Projects and Development India Limited
48. RailTel Corporation of India
49. Rail Vikas Nigam Limited
50. Rashtriya Chemicals & Fertilizers
51. RITES
52. SJVN Ltd.
53. Security Printing and Minting Corporation of India
54. South Eastern Coalfields
55. State Trading Corporation of India
56. Telecommunications Consultants India
 57. THDC Ltd.
58. Western Coalfields
59. Water and Power Consultancy Services
List of Miniratna-II

1. Artificial Limbs Manufacturing Corporation of India

2. Bharat Pumps & Compressors
3. Broadcast Engineering Consultants India
4. Central Mine Planning and Design Institute
5. Central Railside Warehouse Company
6. Engineering Projects
7. FCI Aravali Gypsum and Minerals (India) Limited
8. Ferro Scrap Nigam Limited
9. HMT (International) Ltd.
10. Indian Medicines & Pharmaceuticals Corporation Limited
11. MECON
12. Mineral Exploration Corporation Limited
13. National Film Development Corporation of India
14. PEC Ltd.
15. Rajasthan Electronics & Instruments L