Maharatna And Navratna Companies in India 2022

In several nations, public sector enterprises (PSEs), sometimes known as state-owned businesses (SOEs), have been a fundamental engine of economic development (Kwiatkowski and Augustynowicz, 2015). These businesses (maharatna companies list) represent around 20% of global investment, 5% of employment, and 40% of local production (International Finance Corporation, 2018). According to the Fortune Global 500 business rankings, roughly 25% of multinational firms were owned, controlled, or tied to governments in 2019.  PSEs are important in international commerce and increasing investment flows, tied to a country’s geostrategic reach for India’s top 10 maharatna companies. For example, China, the United Arab Emirates (UAE), Russia, Indonesia, Malaysia, Saudi Arabia, India, and Brazil are the top eight nations with the biggest PSEs. 

Maharatna 

On May 19, 2010, the Maharatna Scheme was created for Central Public Sector Enterprises (CPSEs) to allow major CPSEs to grow their activities and emerge as global giants. The scheme’s goal is to provide larger Navratna CPSEs’ boards more authority so they may expand their activities in both local and international markets.

Maharatna Scheme

• A ‘Maharatna’ CPSE’s Board of Directors can make equity investments in financial joint ventures and wholly-owned subsidiaries, as well as mergers and acquisitions in India and overseas, subject to a cap of 15% of the CPSE’s net worth and a maximum of Rs 5,000 crore in a single project.
• Compared to other CPSEs, Maharatna companies listed CPSEs are granted more autonomy in capital spending, strategic partnership creation, and HR policy design.
• The board can also design and implement personnel and human resource management and training plans. They can also form technical alliances or other strategic partnerships.
• Maharatna’s plan, which was launched in 2010, has its principal goal to empower big CPSEs to extend their operations and become worldwide giants.

Eligibility Requirements for Maharatna status

Maharatna companies list designation is awarded to CPSEs that satisfy the following qualifying criteria:

• Having the status of Navratna.
• A net worth of more than Rs 15,000 crore annually for the previous three years.
• An average annual net profit after tax of more than INR 5,000 crores in the last three years.
• Listed on an Indian stock market with minimum public ownership of 10% as required by SEBI regulations.
• There was an average yearly turnover of more than Rs 25,000 crore in the previous three years.
• There should be a strong worldwide presence and international activities.

Maharatna companies list CPSEs

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.

Navaratna

In India, Navratna companies are a group of public sector companies having financial autonomy to invest up to Rs. One thousand crores without seeking clearance from the government. In 1997, nine Public Sector Enterprises (PSEs) were accorded the Navratna title for the first time.

Navaratna Scheme

In India, Navratna firms are a set of Central Public Sector Enterprises (CPSEs) with more financial autonomy from the government. They can invest up to 1,000 crores without seeking explicit government permission. They can invest up to 15% of their net wealth in a single project or 30% of their net worth over a year, but not more than 1,000 crores. These businesses have a competitive edge globally because they have more autonomy. 

Eligibility Requirements for Navratna status

In 1997, the government launched the Navratna program.

The Miniratna companies in India 2021 Category – I and Schedule ‘A’ CPSEs that have received an ‘excellent’ or very good rating under the Memorandum of Understanding system in three of the previous five years and have a composite score of 60 or above in the six performance indicators, namely, The Boards of Navratna CPSEs have been given expanded authority under this plan in the areas of:

i) Capital investment

ii) Joint ventures/subsidiaries investment

iii) Acquisitions and mergers

iv) Management of human resources, etc.

Navaratna CPSEs

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. Neyveli Lignite Corporation Limited
9. NMDC Limited
10. Oil India Limited
11. Rashtriya Ispat Nigam Limited
12. Rural Electrification Corporation Limited
13. Shipping Corporation of India Limited

Conclusion

Most of the industries in this area are tied to the power industry, iron ore, steel, and petroleum. In addition, these industries have assisted the government in generating significant earnings in recent years. Furthermore, PSUs in India are classified into three groups. Navratnas, Maharatnas, and Miniratnas are the three types. This is also necessary to ensure that each industry has equal liberty to compete worldwide. The navaratna status gives the organisation more financial autonomy, allowing it to invest up to 1000 crores without seeking clearance from the national government. It aids in raising capital and the proper channelling of that money, both of which can aid in establishing competitive public sector firms.