MiniRatna vs NavRatna vs MahaRatna

What are Maharatna in India? In 2009, the government established the Maharatna status, which raises a companys investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. 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 for Maharatna In order to qualify as a Maharatna, a company must have:

Three years with an annual net profit of over Rs.2500 crore Net worth of Rs. 10,000 crore Turnover of Rs. 20,000 crore

What are Navratna in India? The Navratna status is offered to PSEs, which gives a company enhanced financial and operational autonomy and empowers it to invest up to Rs. 1000 crore or 15% of their net worth on a single project without seeking government approval. In a year, these companies can spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad. Criteria for Navratna Navratna status is conferred by Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 (out of 100). The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes) to capital employed, PBDIT to turnover, EPS (Earning Per Share) and inter-sectoral performance. Additionally, a company must first be a Miniratna and have four independent directors on its board before it can be made a Navratna. What are Miniratnas in India? 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 41 government enterprises that were awarded Miniratna status. 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. 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.

List of Maharatna, Navratna and Miniratna CPSEs As per available information (as on 15th April, 2011) Maharatna CPSEs 1. Coal India Limited 2. Indian Oil Corporation Limited 3. 4. NTPC Limited Oil & Natural Gas Corporation Limited Steel Authority of India Limited

5.

Navratna CPSEs 1. Bharat Electronics Limited 2.

3.
4. 5. 6. 7. 8. 9. 10. 11.

Bharat Heavy Electrical Limited Bharat Petroleum Corporation Limited

GAIL (India) Limited Hindustan Aeronautics Limited Hindustan Petroleum Corporation Limited Mahanagar Telephone Nigam Limited National Aluminium Company Limited NMDC Limited Neyveli Lignite Corporation Limited Oil India Limited 12. Power Finance Corporation Limited 13. Power Grid Corporation of India Limited 14. Rashtriya Ispat Nigam Limited 15. Rural Electrification Corporation Limited 16. Shipping Corporation of India Limited Miniratna Category I CPSEs 1. Airports Authority of India 2. Balmer Lawrie & Co. Limited 3. Bharat Dynamics Limited 4. BEML Limited 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Bharat Sanchar Nigam Limited Bridge & Roof Company (India) Limited Central Warehousing Corporation Central Coalfields Limited Chennai Petroleum Corporation Limited Cochin Shipyard Limited Container Corporation of India Limited Dredging Corporation of India Limited Engineers India Limited Ennore Port Limited Garden Reach Shipbuilders & Engineers Limited Goa Shipyard Limited Hindustan Copper Limited HLL Lifecare Limited Hindustan Newsprint Limited Hindustan Paper Corporation Limited

21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.

Housing & Urban Development Corporation Limited India Tourism Development Corporation Limited Indian Railway Catering & Tourism Corporation Limited IRCON International Limited KIOCL Limited Mazagaon Dock Limited Mahanadi Coalfields Limited Manganese Ore (India) Limited Mangalore Refinery & Petrochemical Limited Mishra Dhatu Nigam Limited MMTC Limited MSTC Limited National Fertilizers Limited National Seeds Corporation Limited NHPC Limited Northern Coalfields Limited Numaligarh Refinery Limited Pawan Hans Helicopters Limited Rashtriya Chemicals & Fertilizers Limited RITES Limited

41. SJVN Limited

42. 43. 44. 45. 46. 47. 48. Security Printing and Minting Corporation of India Limited South Eastern Coalfields Limited State Trading Corporation of India Limited Telecommunications Consultants India Limited THDC India Limited Western Coalfields Limited WAPCOS Limited

Miniratna Category-II CPSEs 49.Bharat Pumps & Compressors Limited

50. Broadcast Engineering Consultants (I) Limited

51. Central Mine Planning & Design Institute Limited

52. Ed.CIL (India) Limited

53. Engineering Projects (India) Limited

54. Ferro Scrap Nigam Limited

55. HMT (International) Limited

56. HSCC (India) Limited

57. India Trade Promotion Organisation

58. Indian Medicines & Pharmaceuticals Corporation Limited

59. M E C O N Limited

60. National Film Development Corporation Limited

61. National Small Industries Corporation Limited

62. P E C Limited

63. Rajasthan Electronics & Instruments Limited