Public Sector Undertakings - PSUs in India, Maharatna, Navratna and Miniratna

Public Sector Undertakings, or PSUs, are government-owned businesses in India. They may be owned by the Indian union government or one of the numerous state governments. In India, PSUs or public sector undertakings are very important factors that contribute to the country's economic development. These are the corporations in which the Government of India owns a considerable paid share capital or at least 51%.

Classification of the Public Sector Organizations

The public sector can be categorized as follows:

• Departmental Undertaking: Directly controlled by the relevant ministry or division. (Railways, Post Office, etc.)
• Non-Departmental Undertaking - PSU (e.g. HPCL, IOCL, etc.)
• Monetary institution (e.g. SBI, UTI, LIC, etc.)

Industrialization and developing capital goods and basic industries were the driving forces behind the creation of PSUs. Organizations that do not fall within the public sector are referred to as the private sector, and they strive to increase their profits.

The Department of Public Enterprises has granted CPSEs the rank of Maharatna, Navratna, or Miniratna, depending on their financial performance and advancement.

1. Maharatna status

This is the greatest status a government-owned business may attain. The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to ₹5,000 crores in one project.

Criteria for Maharatna PSU

According to the guidelines released by the Department of Public Enterprises, the CPSEs meeting the following criteria are eligible to be considered for a grant of Maharatna status.

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

List of Maharatna PSU companies in India

(Source: Department of Public Enterprises, Ministry of Finance as on March 2023)

1. Bharat Heavy Electricals limited
2. Bharat Petroleum Corporation Limited
3. Coal India Limited
4. GAIL (India) Limited
5. Hindustan Petroleum Corporation Limited
6. Indian Oil Corporation Limited
7. NTPC Limited
8. Oil & Natural Gas Corporation Limited
9. Power Finance Corporation
10. Power Grid Corporation of India Limited
11. Steel Authority of India Limited
12. REC Limited
13. Oil India Limited

2. Navratna status

Companies holding the status of "Navratna" must be Miniratna Category-I firms with Schedule A status to qualify. Additionally, it must have a composite score of 60 or above in the following six selected performance indicators to be considered for a grant of Navratna status.

List of Navratna Public Sector Companies

(Source: List by Department of Public Enterprises as on March 2023)

1. Bharat Electronics Limited
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
5. Mahanagar Telephone Nigam Limited
6. National Aluminium Company Limited
7. National Buildings Construction Corporation Limited
8. NMDC Limited
9. Neyveli Lignite Corporation Limited
10. Rashtriya Ispat Nigam Limited
11. Shipping Corporation of India Limited
12. ONGC Videsh

3. Miniratna status

This subcategory of CPSEs also includes the following two subtypes:

Miniratna Category-I

The companies must have made a profit in the previous three years, with at least one of those years seeing a pre-tax profit of 30 crores or more.

List of Miniratna Category – I companies

(Source: List by Department of Public Enterprises as on March 2023)

1. Airports Authority of India
2. Antrix Corporation Limited
3. Balmer Lawrie & Co. Limited
4. Bharat Coking Coal Limited
5. Bharat Dynamics Limited
6. BEML Limited
7. Bharat Sanchar Nigam Limited
8. Braithwaite & Company Limited
9. Bridge & Roof Company (India) Limited
10. Central Warehousing Corporation
11. Central Coalfields Limited
12. Central Mine Planning & Design Institute Limited
13. Chennai Petroleum Corporation Limited
14. Cochin Shipyard Limited
15. Cotton Corporation of India Ltd.
16. EdCIL (India) Limited
17. Garden Reach Shipbuilders & Engineers Limited
18. Goa Shipyard Limited
19. Hindustan Copper Limited
20. Hindustan Steelworks Construction Limited
21. HLL Lifecare Limited
22. Hindustan Paper Corporation Limited
23. Housing & Urban Development Corporation Limited
24. HSCC (India) Limited
25. India Tourism Development Corporation Limited
26. Indian Rare Earths Limited
27. Indian Railway Catering & Tourism Corporation Limited
28. Indian Railway Finance Corporation Limited
29. Indian Renewable Energy Development Agency Limited
30. India Trade Promotion Organization
31. IRCON International Limited
32. KIOCL Limited
33. Mazagaon Dock Shipbuilders Limited
34. Mahanadi Coalfields Limited
35. MOIL Limited
36. Mangalore Refinery & Petrochemical Limited
37. Mineral Exploration Corporation Limited
38. Mishra Dhatu Nigam Limited
39. MMTC Limited
40. MSTC Limited
41. National Fertilizers Limited
42. National Projects Construction Corporation Limited
43. National Small Industries Corporation Limited
44. National Seeds Corporation
45. NHPC Limited
46. Northern Coalfields Limited
47. North Eastern Electric Power Corporation Limited
48. Numaligarh Refinery Limited
49. Pawan Hans Helicopters Limited
50. Projects & Development India Limited
51. Railtel Corporation of India Limited
52. Rashtriya Chemicals & Fertilizers Limited
53. RITES Limited
54. SJVN Limited
55. Security Printing and Minting Corporation of India Limited
56. South Eastern Coalfields Limited
57. Solar Energy Corporation of India Limited
58. Telecommunications Consultants India Limited
59. THDC India Limited
60. Western Coalfields Limited
61. WAPCOS Limited

Miniratna Category-II

The businesses must have a positive net worth and have generated profits consistently during the last three years. These businesses are permitted to spend up to 50% of their net value without seeking permission from the government. Miniratna CPSEs shall not depend upon budgetary support or Government guarantees.

List of Miniratna Category – II

(Source: List by Department of Public Enterprises as on March 2023)

1. Artificial Limbs Manufacturing Corporation of India
2. Bharat Pumps & Compressors Limited
3. Broadcast Engineering Consultants India Limited
4. Engineering Projects (India) Limited
5. FCI Aravali Gypsum & Minerals India Limited
6. Ferro Scrap Nigam Limited
7. HMT (International) Limited
8. Indian Medicines & Pharmaceuticals Corporation Limited
9. MECON Limited
10. National Film Development Corporation Limited
11. Rajasthan Electronics & Instruments Limited

Note: There are 74 Miniratna Central Public Sector Enterprises (CPSEs) at present in the country.

4. Goals of Establishing a Public Sector Unit (PSU)

• To establish a national industrial base
• To create more high-quality employment
• To build up the nation's fundamental infrastructure
• To provide the government with resources
• To encourage exporters while lowering imports
• To hasten a nation's economic development and prosperity while reducing inequality.

5. New Public Sector Enterprise (“PSE”) Policy

A new Public Sector Enterprise (PSE) Policy has been notified by the government in February 2021. The policy aims to minimize the presence of the Government in the PSEs across all sectors of the economy. Under the new PSE Policy, public sector commercial enterprises are being classified as Strategic and Non-Strategic sectors.

• Strategic sectors: In Strategic sectors, the bare minimum presence of the existing public sector commercial enterprises at the Holding Company level is to be retained under Government control. The remaining enterprises in a strategic sector are to be privatized or merged with another PSE or closed. Four strategic sectors have been identified based on the criteria of national security, energy security, critical infrastructure, provision of financial services and availability of important minerals. These strategic sectors include
  • Atomic Energy, Space and Defense
  • Transport and Telecommunication
  • Power, Petroleum, Coal and other minerals
  • Banking, Insurance and Financial Services
• Non-strategic sectors: PSEs in non-strategic sectors are to be considered for privatization, where feasible, otherwise such enterprises are to be considered for closure.

PSUs are essential to the prosperity and development of the country. The number of PSUs has been falling for many years for various reasons. For various reasons, some businesses cannot be transferred to the private sector. In such a situation, Government is right in bringing out new Public Sector Enterprise (PSE) Policy.

Happy November get 35% Off
Use Coupon code NOVI24

Rs.199/- Read More

Rs.199/- Read More

Rs.219/- Read More

Rs.199/- Read More

1 LIKES

0

COMMENTS

Comments

COMMENT

Share Blog