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General Awareness > Industrial Development and Foreign Trade > The Policy of Navratnas, Miniratnas, and Maharatnas
Industrial Development and Foreign Trade

The Policy of Navratnas, Miniratnas, and Maharatnas

The public sector units and the enterprises have been an integral part of India since Independence. Mostly in this area, there are industries related to power sector, iron ore, steel, and petroleum. Also, these industries have helped the government warn considerable revenues in these years. Furthermore, there are three categories in which PSUs in India are divided. They are Navratna, Maharatnas, and Miniratnas. Also, this is important to ensure that every industry has equal autonomy to be competitive globally.

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Policies of Navratna, Maharatnas, and Miniratnas

navratna miniratna maharatna

Maharatnas

This scheme of forming industry and terming it as Maharatna came into effect in the middle of 2010. Also, it was done to ensure that the mega CPSEs can expand their operations and enter into the global market.

So, the objective was to identify the large-sized Navratna which can expand its operations for domestic as well as global market.

Browse more Topics under Industrial Development And Foreign Trade

  1. Introduction to Industry
  2. Industrial Policy
  3. Industrial Corridor Projects
  4. Industrial Modernisation
  5. Popular Industries in India
  6. Foreign Trade
  7. Balance of Payment
  8. Structure of Balance of Payments
  9. Balance of Trade
  10. Foreign Investment
  11. Devaluation of Currency
  12. Exchange Rate

Furthermore, there are certain criteria which these industries have to follow to attain the Maharatna status. Here are those:

  • It should have a Navratna status.
  • Furthermore, it should be publicly listed with minimum shares hold be public under the SEBI regulations.
  • In the last three years, it should have an average turnover of Rs. 20000 crore annually.
  • Also, the net worth should be more than Rs. 10000 in these years.
  • The annual net profit of Rs. 2500 is also required criteria.
  • Also, the Navratna should have international operations and global presence.
  • So, some of the examples of Maharatnas are Indian oil corporation limited, ONGC, Coal India limited, GAIL, etc.

Learn more about Industrial Policies here in detail

Navratna

Like Maharatna, Navratnas should also the criteria of CPSEs to be called as Navratna. 

  • First of there needs to be a score of 60 out of 100 for the below parameters.
  • Earnings per share
  • The ratio of net profit and net worth
  • Gross profit as a part of the turnover
  • Gross margin calculated as per capital employed
  • Cost of manpower to cost of services or production

Currently, there are 16 PSUs in India which are termed as Navratnas. Also, the recent addition in this category is the NBCC (National building construction corporation) and EIL (Engineers India limited).

So, some of the examples of Navratnas in India are Bharat petroleum corporation limited (BPCL), National aluminum company, oil India limited, Mahanagar telephone Nigam limited, NMDC, power finance corporation, power grid corporation, and many more.

Miniratna Companies

During the end of 1997, the government of India decided to give more delegation and autonomy to some companies that make fewer profits but can be competitive and efficient.

So, these were called the Miniratnas and there are 2 categories in it. Also, the eligibility criteria for the category is different.

Criteria for category 1

The CPSEs for this category should have made a profit for the last three years consecutively. Also, the pre-tax profit made by the companies should be more than Rs. 30 crores in any one year of the three years.

Criteria for category 2

The CPSEs should have a positive net worth and should have made a profit in the last three consecutive years. Also, some of the CPSEs that fall into Miniratnas are BEML limited, airports authority of India (AAI), BSNL, central coalfields limited, etc.

Practice Questions for You 

Q. Which of these CPSEs is an example of Maharatnas?

A. Indian oil corporation limited 

B. Airport Authority of India

C. Power grid corporation

D. None of the above

Answer: A. Indian oil corporation limited

Q. From the given options which CPSE is termed as Miniratna?

A. BHEL

B. BSNL

C. ONGC

D. Bharat electronics limited

Answer: B. BSNL

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