Economy News

RATNA STATUS TO CENTRAL PUBLIC SECTOR ENTERPRISES (CPSEs)

Written by Talent KAS

Related Topic in KAS Prelims Syllabus: 

Economy [Paper-II]: Public Sector enterprises and their performance

News

Union Minister of Heavy Industries & Public Enterprises, Prakash Javadekar informed the Lok Sabha about the criteria laid down by the Government for grant of Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises (CPSEs).

Criteria for grant of Maharatna status to CPSEs

  • Having Navratna status
  • Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations
  • An average annual turnover of more than 25,000 crore during the last 3 years
  • An average annual net worth of more than 15,000 crore during the last 3 years
  • An average annual net profit after tax of more than 5,000 crore during the last 3 years
  • Should have significant global presence/international operations

Criteria for grant of Navratna status to CPSEs

CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having composite score of 60 or above in following six selected performance indicators are eligible to be considered for grant of Navratna status.

Criteria for grant of Miniratna status to CPSEs

Miniratna Category-I status

The CPSEs which have made profit in the last three years continuously, pre-tax profit is Rs.30 crores or more in at least one of the three years and have a positive net worth are eligible to be considered for grant of Miniratna-I status.

Miniratna Category-II status

The CPSEs which have made profit for the last three years continuously and have a positive net worth are eligible to be considered for grant of Miniratna-II status.

  • Miniratna CPSEs should have not defaulted in the repayment of loans/interest payment on any loans due to the Government.
  • Miniratna CPSEs shall not depend upon budgetary support or Government guarantees.

[Source: PIB]

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