The concept of Maharatna, Navratna and Miniratna Companies

The concept of Maharatna, Navratna and Miniratna 
In order to provide financial autonomy to the public sector companies, the concept of Navratna and Miniratna was introduced in 1997. The concept of Maharatna was introduced later in 2009.

In order to categorise a company as Maharatna Company the following conditions have to be
fulfilled:-
● It should be a public sector company.
● It should be listed on the stock exchange.
● It should have a global presence.
● It should be an existing Navratna company.
● In last 3 years average annual revenue of the company should not be less than 25,000
crore rupees.
● In last 3 years average annual net worth of the company should not be less than 15,000
crore rupees.
● In the last three years average annual profit of the company should not be less than 5,000
crore rupees.
Maharatna company may do a capital investment of upto rupees 5,000 crore or up to 15% of its net worth (whichever is less), in one financial year without seeking permission from the related ministry. At present there are 12 Maharatna Companies they are a follows-:
1. CIL - Coal India Limited.
2. ONGC - Oil and Natural Gas Corporation Limited.
3. NTPC - National Thermal Power Corporation Limited.
4. BHEL - Bharat Heavy Electricals Limited.
5. GAIL - Gas Authority of India Limited.
6. SAIL - Steel Authority of India Limited.
7. BPCL - Bharat Petroleum Corporation Limited.
8. IOCL - Indian Oil Corporation Limited.
9. PGC - Power Grid Corporation of India Limited.
10. HPCL - Hindustan Petroleum Corporation Limited.
11. PFC - Power Finance Corporation.
12. REC – Rural Electrification Corporation.
Government of India accorded ‘Maharatna’ status to Power PFC in October 2021. Later in September 2022 the status was accorded to REC.


In order to classify a company in the category of Navratna, following conditions have to be
fulfilled:-
● It should be a public sector company.
●  It should be listed on a stock exchange.
● Out of the last five years, in any three years the company should be in the category of excellent, very good, good based on the concept of MOU.
● Based on six different factors like profit, net value, income per share etc. a report card of public sector companies is prepared. Company should be able to score at least 60% out of the total score.
At present there are 14 Navratna companies . Navratna company may do a capital investment up to 1,000 crore rupees in one financial year or up to 15% of its net worth (whichever is less), without seeking permission from the related ministry.


For a company to be categorised as Miniratna Company it should be:-
● A public sector company but listing on stock exchange is not essential.
● In the last three years the company should be in profit and during this period in none of the year the companies net worth should be negative.

● Miniratna companies are again classified into two types:
• Miniratna Category 1 companies can invest an amount upto rupees 500 crore or up to 15% of their net worth (whichever is less) in one financial year, without seeking permission from the related ministry.

•Miniratna Category 2 compapies can invest in an amount upto rupees 300 crore or up to 15% of their net worth in one financial year without seeking permission from the related ministry.

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