Industries & Public Enterprises
endeavour of the Government is to make Central Public
Sector Enterprises (CPSEs) autonomous board managed companies. Under Articles of Association, the Board of Directors
of CPSEs enjoy autonomy in respect of recruitment,
promotion and other service conditions of below board level employees. The Board of Directors of a CPSE exercises
delegated powers subject to board policy guidelines issued by Government has
granted enhanced powers to the Boards of the profit making enterprises under
various schemes like ‘Maharatna’, ‘Navratna’ and ‘Miniratna’ in the
Government had introduced the ‘Navratna’ scheme, in 1997, to identify
Central Public Sector Enterprises (CPSEs) that had comparative advantages and
to support them comparative advantages and to support them in their drive to
become global giants. The Boards of ‘Navratna’ CPSEs have been delegated powers in the areas
of (i) capital
expenditure, (ii) investment in joint ventures/subsidiaries, (iv) human resources management, etc.
current criteria for grant of ‘Narvatna’ status are
size neutral. Over the years, some of
the ‘Navratna’ companies have grown very big and have
considerably larger operations than their peers. The CPSEs which are at the higher end of the ‘Navratna’ category and have higher end of the ‘Navratna’ category and have potential to become Indian
Multinational Companies (MNCs), should be recognized
as a separate classs, i.e. ‘Maharatna’. The higher category will act as an incentive
for other ‘Navratna’ companies, provide brand value
and facilitate delegation of enhanced powers to CPSEs.
new objective of the ‘Maharatna’ scheme is to empower
mega CPSEs to expand their operations and emerge as global giants. The ‘Maharatna’
Scheme will empower big sized CPSEs to expand their operations and emerge as
CPSEs meeting the following eligibility criteria are considered for ‘Maharatna’ status:
a) Having ‘Navratna’
b) Listed on Indian stock exchange with
minimum prescribed public shareholding under SEBI regulations.
c) An average annual turnover of more than Rs. 25,000 crore during the last 3 years.
d) An average annual net worth of more
than Rs. 15,000 crore during the last 3 years.
e) An average annual net profit after tax
of more than Rs. 5,000 crore during the last 3 years.
f) Should have significant global presence
procedure for grant of ‘Maharatna’ status as well as
their review is similar to that in vogue for the grant to ‘Navratna’
Boards of ‘Maharatna’ CPSEs in addition to exercising all powers to ‘Navratna’ CPSEs, will exercise enhanced powers in the area
of investment in joint ventures/subsidiaries
and creation of below Board level posts.
The Boards of ‘Maharatna’ CPSEs will have powers to (a) Make equity investment to establish financial
joint ventures and wholly owned subsidiaries in India or abroad and (b)
undertake mergers & acquisitions, in India or abroad, subject to a ceiling
of 15% of the net worth of the concerned
CPSE in one project, limited to an absolute ceiling of Rs. 5,000 crore (Rs. 1,000 core for ‘Navratna’
(CPSEs). The overall ceiling on such
equity investments and mergers and acquisitions in all projects put
together will not exceed 30% of the net worth of the concerned CPSE. In addition, the Boards of ‘Maharatna’ CPSEs will have powers to create below Board
level posts up to E-9 level.
there are seven ‘Maharatna’ CPSEs, viz. (i) Bharat Heavy Electricals Limited, (ii) Coal India Limited, (iii) GAIL (India) Limited, (iv) Indian Oil Corporation Limited, (v) NTPC
Limited, (vi) Oil & Natural Gas Corporation Limited and (vii)Steel
Authority of India Limited. Bharat Heavy Electricals Limited and GAIL (India)
Limited have been granted ‘Maharatna’ status during
the year 2012-13.
this scheme, the Government has enhanced powers delegated to CPSEs having
comparative advantage and the potential to become global players. Presently, there are 14 ‘Navratna’
CPSEs as under:
(ii) Bharat Petroleum Corporation Limited
(iii) Hindustan Aeronautics Limited
(iv) Hindustan Petroleum Corporation Limited
Telephone Nigam Limited
(vi) National Aluminium
(vii) Neyveli Lignite Corporation
(ix) Oil India Limited
(x) Power Finance Corporation Limited
(xi) Power Grid Corporation of India Limited
Rashtriya Ispat Nigam Limited
Rural Electrification Corporation
(xiv) Shipping Corporation of India Limited.
October 1997, the Government had also decided to grant enhanced autonomy and
delegation of financial powers to some other profit making companies subject to
certain eligibility conditions and guidelines to make them efficient and
competitive. These companies called ‘Miniratnas’, are in two Category-II. The eligibility conditions and criteria are:
(i) Category –I
CPSEs should have made profit in the last three years continuously, the pre-tax
profit should have been Rs. 30 crore or more in at
least one of the three years and should have a positive net worth.
(ii) Category-II CPSEs should have made
profit for the last three years continuously and should have a positive net
(iii) These CPSEs shall be eligible for the
enhanced delegated powers provided they have not defaulted in the repayment of
loans/interest payment on any loans due to the Government.
public sector enterprises shall not depend upon budgetary support or Government
(v) The Boards of these CPSEs should be
restructured by inducting at least three non-official Directors as the first
step before the exercise of enhanced delegation of authority.
(vi) The administrative
Ministry concerned shall decide whether a Public Sector Enterprise fulfilled
the requirements of a Category-I/Category-II company before the exercise of
there are 68 ‘Miniratna’ CPSEs (52 Category –I and 16
Category-II). The concerned
administrative Ministries/Departments have been requested to undertake an
exercise to ensure that the existing ‘Miniratna’
CPSEs under their respective administrative control continue to fulfill the
laid down criteria.