Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants". The number of PSEs having Navratna status has been raised to 16, the most recent addition being Oil India Limited.
PSU companies are divided into three categories:
- Miniratna CPSEs
- Category I
- Category II
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. The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. BHEL is elegible for Maharatna status and has also applied for the same.
The six criteria for eligibility as Maharatna are:
- Having Navratna status.
- Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
- An average annual turnover of more than Rs. 20,000. crore during the last 3 years. Earlier it was Rs 25,000 Crore.
- An average annual net worth of more than Rs. 10,000 crore during the last 3 years. Earlier it was Rs. 15,000 crore.
- An average annual net profit after tax of more than Rs. 2500 crore during the last 3 years. Earlier it was Rs. 5000 crore.
Should have significant global presence/international operations.
List of Maharatna
- Coal India Limited
- Indian Oil Corporation Limited
- NTPC Limited
- Oil and Natural Gas Corporation Limited
- Steel Authority of India limited
Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997 as having comparative advantages, which allowed them greater autonomy to compete in the global market. The number of PSEs having Navratna status has been raised to 16, The government is likely to accord the coveted status to Mishra Dhatu Nigam Limited, which is under consideration.
List of Navratna
- Bharat Heavy Electricals Limited
- Bharat Electronics Limited
- Bharat Petroleum Corporation Limited
- Hindustan Aeronautics Limited
- Hindustan Petroleum Corporation Limited
- Mahanagar Telephone Nigam Limited
- National Aluminium Company Limited
- National Mineral Development Corporation Limited
- Neyveli Lignite Corporation Limited
10. Oil India Limited
11. Power Finance Corporation Limited
12. Power Grid Corporation of India Limited
13. Rashtriya Ispat Nigam Limited
14. Rural Electrification Corporation Limited
15. Shipping Corporation of India Limited
16. GAIL (India) Limited
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 68 government enterprises that were awarded Miniratna status.
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 Miniratna granted certain autonomy like incurring capital expenditure without government approval up to Rs. 500 crore or equal to their net worth, whichever is lower.
- Projects & Development India limited
- Airports Authority of India
- Antrix Corporation Limited
- Balmer Lawrie & Co. Limited
- Bharat Dynamics Limited
- BEML Limited
- 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
- Housing and Urban Development Corporation
- India Tourism Development Corporation
- Indian Railway Catering and Tourism Corporation
- IRCON International Limited
- Kudremukh Iron Ore Company Limited.
- Mazagaon Dock Limited
- Mahanadi Coalfields Limited
- Manganese Ore (India) Limited
- Mangalore Refinery and Petrochemicals Limited
- Mishra Dhatu Nigam Limited
- Minerals and Metals Trading Corporation of India
- MSTC Limited
- National Fertilizers Limited
- National Seeds Corporation Limited
- NHPC Limited
- Northern Coalfields Limited
- Numaligarh Refinery Limited
- ONGC Videsh Limited
- Pawan Hans Helicopters
- Rashtriya Chemicals & Fertilizers Limited
- RITES Limited
- Satluj Jal Vidyut Nigam
- Security Printing and Minting Corporation of India Limited
- South Eastern Coalfields Limited
- State Trading Corporation of India Limited
- Tehri Hydro Development Corporation Limited
- Telecommunications Consultants (India) Limited
- Western Coalfields Limited
- Water & Power Consultancy (India) Limited
- RailTel Corporation of India Ltd.
- National Building Construction Corporation Ltd.
The Category II kind of PSE’s has made profits for the last three years continuously and should have a positive net worth. Unlike Category I PSE’s, these PSE’s can invest up to Rs.250.cr or up to 50% of their net worth whichever is lower. There are 15 such PSE’s as on April 2011.
- Bharat Pumps & Compressors Limited
- Broadcast Engineering Consultants (I) Limited
- Central Mine Planning & Design Institute Limited
- Ed.CIL (India) Limited
- Engineering Projects (India) Limited
- FCI Aravali Gypsum & Minerals India Limited
- Ferro Scrap Nigam Limited
- HMT (International) Limited
- HSCC (India) Limited
- India Trade Promotion Organisation
- Indian Medicines & Pharmaceuticals Corporation Limited
- M E C O N Limited
- National Film Development Corporation Limited
- National Small Industries Corporation Limited
- P E C Limited
- Rajasthan Electronics & Instruments Limited