In May, 1990, the Bureau of Public Enterprises (BPE) was made a full-fledged Department known as the Department of Public Enterprises (DPE). Currently; DPE is the part of the Ministry of Heavy Industries & Public Enterprises.
The Department of Public Enterprises is the nodal department for all the Central Public Sector Enterprises (CPSEs). DPE; makes policies and guidelines for the performance evaluation and improvement of the PSUs/ CPSEs.
The Central Government has set eligibility criteria for granting Maharatna, Navaratna and Miniratna status to Central Public Sector Enterprises (CPSEs).
This article is explaining the eligibility criteria to make public sector company a Maharatna or Navaratna or Miniratna.
It is worthy to mention here that there are 8 Maharatna, 16 Navratna and 74 Miniratna companies (which are further divided in category 1 and category 2) in India.
Let us now know that how Maharatna, Navaratna and Miniratana status given to the CPSEs.
Criteria to become Maharatna company:-
The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status.
(1). The CPSE should already be a Navratna company.
(2). The CPSE should have average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
(3). The CPSE's average annual net profit after tax should be more than Rs. 5,000 crore, during the last 3 years.
(4). The CPSE should be listed on Indian Stock exchange with minimum prescribed public shareholding under SEBI regulations.
(5). The CPSE should have average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
(6).The CPSE should have significant presence globally.
Criteria to become Navratna company:-
(1). A CPSE which falls under the Miniratna (Category – I and Schedule ‘A’ CPSEs), has obtained rating of ‘very good’ or ‘excellent’ in 3 of the last 5 years.
(2). A CPSE which has composite score of 60 or above in the 6 selected performance parameters, namely;
(I). Net profit to net worth
(II). Earnings per share
(III).Profit before interest and taxes to turnover
(IV).Profit before depreciation, interest and taxes to capital employed
(V). Manpower cost to total cost of production/services
Criteria for grant of Miniratna status:-
Those CPSEs which fulfill these two criteria are eligible to be considered for grant of Miniratna status.
1. The CPSEs which have made profits in the last 3 years continuously
2. The CPSEs which have positive net worth
So from the above article you must come to know that on which basis the status of Maharatna, Navaratna and Miniratna is given to the Central Public Sector companies and as of now how many Maharatna, Navaratna and Miniratna companies are in India?