Navratna and Maharatna Status are given to PSUs depending on their success.
Navratna Status:
- The Government had introduced Navratna scheme, in 1997, to identify CPSEs that had comparative advantages and to support them in their drive to become global giants.
- The Boards of Navratna CPSEs have been delegated powers in following areas:
- Capital expenditure,
- Investment in joint ventures / subsidiaries,
- Mergers & acquisition and
- Human resources management, etc.
Maharatna Status:
- The “Maharatna” category for CPSEs was introduced in 2009 with objective to empower mega CPSEs to expand their operations and emerge as global giants or become Indian Multinational Companies (MNCs).
- At present, there are seven Maharatna companies:
- Bharat Heavy Electricals (BHEL),
- Coal India (CIL),
- GAIL (India),
- Indian Oil Corporation,
- NTPC,
- Oil and Natural Gas Corporation (ONGC) and
- Steel Authority of India (SAIL).
- Maharatna and Navaratna state-owned units operate in strategic fields such as coal, petroleum, steel, heavy engineering, telecommunications, power supply and transportation services.
Criteria for Maharatna status
Under government rules, Central Public Sector Enterprises (CPSEs) must fulfill following criteria for grant of Maharatna status.
- Having Navratna status.
- Average annual turnover of more than Rs. 25,000 crore, during last 3 years.
- Average annual net worth of more than Rs. 15,000 crore, during last 3 years.
- Average annual net profit after tax of more than Rs. 5,000 crore, during last 3 years.
- Should have significant global presence and international operations.
- Listed on Indian stock exchange with minimum prescribed public shareholding limit under SEBI regulations.
Why in news? Bharat Petroleum is also being elevated to Maharatna Status from Navratna Status