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Navratna - Economics; UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
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FAQs on Navratna - Economics; UPSC IAS Exam Preparation Video Lecture - Indian Economy (Prelims) by Shahid Ali
| 1. What is Navratna in the context of economics? |  |
Ans. Navratna refers to a scheme introduced by the Government of India to identify and grant special status to certain public sector enterprises (PSEs). These PSEs are recognized for their consistent performance and are given greater autonomy and financial powers to enhance their competitiveness in the market.
| 2. How does the Navratna scheme benefit the selected public sector enterprises? | |
Ans. The Navratna scheme provides several benefits to the selected public sector enterprises. These include greater autonomy in decision-making, enhanced financial powers, improved management practices, and flexibility in the use of funds. It allows the selected PSEs to undertake investments in joint ventures, subsidiaries, and strategic alliances without seeking prior government approval.
| 3. What are the criteria for a public sector enterprise to be eligible for the Navratna status? | |
Ans. To be eligible for the Navratna status, a public sector enterprise must fulfill certain criteria set by the government. These include a consistently high level of profitability, a net worth of at least ₹1,000 crore, and a positive net worth in each of the last three years. The enterprise should also have earned net profit after tax in each of the last three years and should have a satisfactory rating in terms of various performance parameters.
| 4. How many public sector enterprises are currently classified as Navratna? | |
Ans. As of now, there are a total of 16 public sector enterprises that have been granted the Navratna status by the Government of India. These include companies like Bharat Electronics Limited, Hindustan Aeronautics Limited, National Aluminium Company Limited, Oil India Limited, and Power Finance Corporation Limited, among others.
| 5. What are the objectives of the Navratna scheme in India? | |
Ans. The Navratna scheme aims to enhance the competitiveness and efficiency of public sector enterprises in India. It seeks to empower selected PSEs by granting them greater autonomy, enabling them to make strategic decisions independently. The scheme also encourages these enterprises to explore new business opportunities, foster innovation, and expand their operations globally. Overall, the objectives of the Navratna scheme are to promote growth, profitability, and sustainability of these enterprises in the global market.
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Oct 31, 2024 Last updated |
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