MINIRATNA COMPANY (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     21st March 2024        
Samadhaan

Context: Grid Controller of India Limited (GRID-INDIA) achieved a significant milestone by being conferred with the status of Miniratna Category-I Central Public Sector Enterprise (CPSE).

Miniratna Company

  • About: These are also known for their operational excellence and financial stability, but they may require government approval for certain investment decisions.
  • Criteria for Miniratna CPSEs: Miniratna CPSEs must have generated profits continuously for the past three years and possess a positive net worth to be eligible for Miniratna status.
  • Types of Miniratnas:

oCategory - I: Miniratnas in this category have either made profits in the previous three years or generated a profit of Rs 30 crore or more in one of the preceding three years.

oCategory - II: Miniratnas in this category have made profits in the preceding three years and have a positive net worth in all three preceding years.

Navaratna company- Criteria:

  • A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, the total cost of production, cost of services,  PBDIT (Profit Before Depreciation, Interest, and Taxes), capital employed, etc., AND
  • PSU must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

Maharatnna company - Criteria:

  • Three years with an average annual net profit of over ₹2,500 crores, OR
  • The average annual Net worth of ₹10,000 crores for three years, OR
  • Average annual Turnover of ₹20,000 crore for three years (against Rs 25,000 crore prescribed earlier)
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