What is in the News?

• The Government of India has elevated Oil India Limited to the ‘Maharatna’ category, granting the company enhanced decision-making powers in financial matters.
• Oil India has become the 13th Maharatna Central Public Sector Enterprise (CPSE) in India. 
• Having achieved Navaratna status in 2010, Oil India’s recent acquisition of Numaligarh Refinery Ltd. further solidified its position as an integrated energy company.
• Also, the government elevated ONGC Videsh Ltd (OVL) to Navratna CPSE. OVL will be the 14th Navratna amongst the CPSEs.

Criteria for Maharatna , Navratna & Miniratna

Criteria for Maharatna Status

• Shall have Navratna status.
• Listed on the Indian stock exchange with prescribed public shareholding.
• Average annual turnover > Rs. 25,000 crore (last 3 years).
• Annual net worth > Rs. 15,000 crores (last 3 years).
• Annual net profit after tax > Rs. 5,000 crores (last 3 years).
• Significant global presence/international operations.

Criteria for Navratna Status

• Miniratna Category – I or Schedule ‘A’ CPSEs.
• ‘Excellent’ or ‘Very Good’ rating in 3 of last 5 years.
• Composite score of 60 or above in the following 6 performance indicators including Net Profit to Net Worth, Cost of Services, Earning per share, etc.

Criteria for Miniratna Status

• Miniratna Category – I :
  • Made profit in the last 3 years continuously.
  • Pre-tax profit is Rs.30 crores or more in at least 1 of the 3 years.
  • Having Positive net worth status.
• Miniratna Category – II :
  • Profit made for the last 3 years continuously
  • Having positive net worth status.
  • Not defaulted in the repayment of loans/interest payment on any loans due to the Government.
  • Not dependent upon budgetary support or Government guarantees.

Also read about Investment Facilitation Agreement, click here

Practice Questions for Prelims

Which of the following is the criterion for maharatna status?
a) 3 years with annual profit of 2500 crore
b) Turnover of 20000 crore
c) net worth of 10,000 crore
d) All of the above

Ans. d)

Mains Practice Question

What are Maharatna, Navratna & Miniratna companies? How will upliftment of these companies help in the overall upliftment of Indian Economy?

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