NAVARATNA COMPANIES

INTRODUCTION

Public sector enterprises or public sector undertakings have
been the backbone of Indian Economy since the time of
independence.
The Government came up with Navratna Scheme for
public undertakings in 1997.
Initially there were nine companies enlisted as Navratna
in 1997.
Today there are four such categories viz. Maharatna,
Navratna, Mini Ratna I and Mini Ratna II.
Role Of Public Sector In India
Fillings of Gaps
Employment
Balanced Regional Development
Contribution to Public Exchequer
Foreign Exchange Earnings
Development of Ancillary industries
Research and Development
Community Development
Social Justice

PSU COMPANIES
PSU companies are divided into three categories:
Maharatna
Navratna
Miniratna
Category I
Category II

HISTORICAL SYMBOLISM: NAVARATNA

Originally, the term Navaratna meant a talisman or ornament
composed of nine precious gems.

Navratna was the title given originally to 9 Public Sector
Enterprises (PSEs) identified by the Government of India in
1997 as "public sector companies that have comparative
advantages", giving them greater autonomy to compete in the
global market so as to "support them in their drive to become
global giants".
CRITERIA FOR NAVRATNA
Navratna status is conferred by Department of Public
Enterprises.

To be qualified as a Navratna, the company must obtain a
score of 60 (out of 100).

Additionally, a company must first be a Miniratna and have
four independent directors on its board before it can be made
a Navratna.

CURRENT FINANCIAL AUTONOMY
STATUS

There are currently:
7 Maharatna, 14 Navratna and 53 Miniratnas-I and 16
Miniratna-II.

Maharatna :
Three years with an annual net profit of over Rs. 5000 crore
Average annual Net worth of Rs. 15,000 crore for 3 years
Average annual Turnover of Rs. 25,000 crore for 3 years

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

Cont.
Miniratna Category-I
Have made profits continuously for the last three
years or earned a net profit of Rs. 30 crore or more
in one of the three years
Miniratna Category-II
Have made profits for the last three years
continuously and should have a positive net worth.

List of Maharatna:

Coal India Limited
Indian Oil Corporation
NTPC Limited
Steel Authority of India limited
Bharat Heavy Electricals Limited
GAIL (India) Limited
Oil and Natural Gas Corporation
List of Navratna:

Bharat Electronics Limited
Bharat Petroleum Corporation Limited
Bharat Heavy Electricals Limited
Hindustan Aeronautics Limited
GAIL (India) Limited
Hindustan Petroleum Corporation Limited
Mahanagar Telephone Nigam Limited
National Aluminium Company Limited
Cont..
National Mineral Development Corporation
Limited
Neyveli Lignite Corporation Limited
Oil India Limited
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Rashtriya Ispat Nigam Limited
Rural Electrification Corporation Limited
Shipping Corporation of India Limited
MINIRATNA CATEGORY - I

Airports Authority of India
Antrix Corporation Limited
Balmer Lawrie & Co. Limited
Bharat Dynamics Limited
BEML Limited
Bharat Sanchar Nigam Limited
Bridge & Roof Company (India) Limited

Cont
Central Warehousing Corporation
Central Coalfields Limited
Chennai Petroleum Corporation Limited
Cochin Shipyard Limited
Container Corporation of India Limited


MINIRATNA CATEGORY-II

Bharat Pumps & Compressors Limited
Broadcast Engineering Consultants (I)
Limited
Central Mine Planning & Design Institute
Limited
Ed.CIL (India) Limited
Engineering Projects (India) Limited
FCI Aravali Gypsum & Minerals India
Limited
Ferro Scrap Nigam Limited
HMT (International) Limited


NEED OF NAVARATNA
COMPANIES
Economic development
Development of backward Areas
Employment generation
Defense
Labour welfare
Consumer welfare
Public utilities
Self-reliance
CONCLUSION

The Navratna Companies of India have survived from
recession and still maintain that record of making profits.
It has provided large employment opportunities.
The Navratna companies are a group of Indian public-sector
enterprises to which the Indian government has given a
measure of financial and operational autonomy that allows
them to make investments without the need to seek
government approval.
References

Original govt. announcement about the Navratna 1997
"Maharatna status for mega PSUs gets nod". The Times of
India. 25 December 2009. Retrieved 29 December 2009.
Coal India gets Maharatna tag - Economic Times Article
PSUs get Maharatna status - Indianexpress
PSUs get Maharatna status - Indianexpress
Dept of Public Enterprises, Govt. of India