criteria for navratna status

1,000 core for ‘Navratna’ (CPSEs). Under this scheme, the Government has enhanced powers delegated to CPSEs having comparative advantage and the potential to become global players. These categories were Category I and Category II. (ii) manpower cost to total cost of production/services. 2. Over the years, some of the ‘Navratna’ companies have grown very big and have considerably larger operations than their peers. Focus on Criteria for Prelims , delegation of powers is optional read. Having Navratna status Listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations An average annual turnover of more than Rs. The Navratna status empowers PSEs to invest up to Rs. Maharatna. (iii) Average annual turnover of more than Rs. Presently, there are 7 Maharatna, 16 Navratna and 71 Miniratna CPSEs. It should have obtained a rating of ‘very good’ or ‘excellent’ rating in 3 of the last 5 years under the Memorandum of Understanding (MoU) system. 1. 30 crore or more in at least one of the three years and should have a positive net worth. 250 crore or equal to 50 % of the net worth, whichever is less. Criteria for grant of Navratna status to PSUs To get Navratna status, the company (PSU) must full-fill the following criteria: The company should have Miniratna-I, Schedule ‘A’ status. 1000 cr. Average annual turnover of more than 25,000 crore, during the last 3 years. Further, the powers relating to M&As should be exercised in such a manner that it should not lead to any change in the public sector character of the concerned CPSEs. 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. 3. It should have at least 3 ‘Excellent’ or ‘Very Good’ Memorandum of Understanding (MoU) during the last five years. Gross margin calculated as per capital employed 6. Criteria for giving Navratna Status: The company must have ‘ Miniratna Category – I ‘ status along with a Schedule ‘A’ listing. 10,000 crore for 3 years The ratio of net profit and net worth 4. 2. 500 crore or equal to net worth, whichever is less. To create below Board level posts up to E-9 level and to wind up all below Board level posts. 15,000 crore, during the last 3 years. In all other cases including those of Chief Executive, tours abroad would continue to require the prior approval of the minister of the Administrative Ministry/Department. Having Navratna status. To raise debt from the domestic capital markets and international markets, the latter being subject to the approval of RBI/Department of Economic Affairs, as may be required. To effect organisational restructuring including establishment of profit centers, opening of offices in India and abroad, creating new activity centres, etc. of below Board level executives to subcommittees of the Board or to executives of the CPSE, as may be decided by the Board of the CPSE. Eligibility Criteria: A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna. The eligibility criteria laid down by the Government for grant of Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises (CPSEs) are following: The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status. Eligibility Criteria and Procedure for grant of Navratna Companies. Bharat Heavy Electricals Limited and GAIL (India) Limited have been granted ‘Maharatna’ status during the year 2012-13. Maharatna. Criteria for grant of Navratna status to CPSEs • The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having composite score of 60 or above in following six selected performance indicators are eligible to be considered for grant of Navratna status. CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having composite score of 60 or above in following six selected performance indicators are eligible to be considered for grant of Navratna status. The criteria and growth under Maharatna: Companies that come under this category are listed under the guidelines of the stock exchange of India. To establish financial joint ventures and wholly owned subsidiaries in India or abroad with the stipulation that the equity investment of the CPSE should be limited to the following:-, b. Creation and winding up of all posts including and upto those of non Board-level Directors, i.e. (iv) profit before interest and taxes to turnover, To enter into technology joint ventures or strategic alliances, To obtain by purchase or other arrangements, technology and know-how. A score of 60 (out of 100) is required, based on parameters which are given below. The higher category will act as an incentive for other ‘Navratna’ companies, provide brand value and facilitate delegation of enhanced powers to CPSEs. 5,000 crore (Rs. In 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. Eligibility Criteria: Three years with an average annual net profit of over Rs. 5,000 crore, during the last 3 years. (DPE O.M. 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. The above delegation of powers is subject to similar conditions as are applicable to Navratna CPSEs. Approval for the same should be obtained through the administrative Ministry. Eligibility Criteria. Source: Department of Public Enterprises (as on March, 2018), https://pib.gov.in/newsite/mbErel.aspx?relid=107091, Articles to read in Newspapers 20th December 2019. Average annual net profit after tax of more than Rs. 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. Criteria for grant of Navratna status :- The Miniratna Category – I and Schedule ‘A’ CPSEs, which have obtained ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in three of the last five years, and have composite score of 60 or above in … To effect organizational restructuring including establishment of profit centre, opening of offices in India/abroad, creating new activity centres etc. Holding companies are empowered to transfer assets, float fresh equity and divest shareholding in subsidiaries subject to the condition that the delegation will only be in respect of subsidiaries set up by the holding company under the powers delegated to Navratna/Maharatna CPSEs and further to the proviso that a) the public sector character of the concerned CPSE (including subsidiary) would not be changed without prior approval of the Government, and b) such Maharatna CPSEs will be required to seek Government approval before exiting from their subsidiaries. The Board of Directors of these CPSEs have the powers for mergers and acquisitions, subject to the conditions that (i) it should be as per the growth plan and in the core area of functioning of the CPSE, (ii) conditions/limits would be as in the case of establishing joint ventures/subsidiaries, and (iii) Cabinet Committee on Economic Affairs would be kept informed in case of investments abroad. Criteria for a PSU to get 'Maharatna' status. 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. The annual income of the companies is possibly more than 25 crore rupees. Criteria for grant of Navratna status: The Miniratna Category – I and Schedule ‘A’ CPSEs, which have obtained ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in three of the last five years, and have composite score of 60 or above in the six selected performance parameters, namely, In all other cases including those of Chief Executive, tours abroad would continue to require the prior approval of the Minister of the Administrative Ministry/Department. Eligibility Criteria for Maharatna: The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status. 3. In October 1997, the Government decided to grant enhanced autonomy and delegation of financial powers to some other profit making companies (other than the Navratnas) subject to certain eligibility conditions and guidelines to make them efficient and competitive. To undertake mergers and acquisitions, subject to the conditions that (i) it should be as per the growth plan and in the core area of functioning of the CPSE, (ii) conditions/limits would be as in the case of establishing joint ventures/subsidiaries, and (iii) the Cabinet Committee on Economic Affairs would be kept informed in case of investments abroad. To further delegate the powers relating to Human Resource Management (appointments, transfer, posting etc) of below Board level executives to sub-committees of the Board or to executives of the CPSE, as may be decided by the Board of CPSE. The central Government has laid down eligibility criteria to grant Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises (CPSEs).This article is explaining the criteria for granting the Maharatna, Navaratna and Miniratna status granted to PSUs/ CPSEs. continuous, Pre-Tax Profit > Rs.30 Crores in at least one of the 3 years and positive net worth (ii) Category- II Eligibility Criteria. Recently ‘Maharatna’ status has been granted by the Government to state-owned Hindustan Petroleum Corporation Limited and Power Grid Corporation of India Limited. Earnings per share 3. Have made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years Category –I CPSEs should have made profit in the last three years continuously, the pre-tax profit should have been Rs. How many and What are they: Presently there are seven ‘Maharatna’ CPSEs, viz. To make equity investment to establish financial JVs and wholly owned subsidiaries and undertake mergers and acquisitions (M&As) in India or abroad, subject to a ceiling of 15% of the net worth of the concerned CPSE, limited to Rs.5.000 crore in one project. Like Maharatna, Navratnas should also the criteria of CPSEs to be called as Navratna. The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having composite score of 60 or above in following six selected performance indicators are eligible to be considered for grant of Navratna status. Profit in last 3 yrs. For Maharatna status: Having Navratna status, Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations, Average annual turnover of more than Rs. The Board of Directors shall have the powers for M&As, subject to the conditions that (a) it should be as per the growth plan and in the core area of functioning of the CPSE and (b) the Cabinet Committee on Economic Affairs (CCEA) would be kept informed in case of investments abroad. Criteria for grant of Navratna status to CPSEs . 1. The Government of India gave the status of Navratna to 9 CPSEs, to provide them with more power and autonomy to compete in the global market, to support them in their drive to become global giants. No. 25,000 crore, during the last 3 years. CPSEs Category II: The power to incur capital expenditure on new projects, modernisation, purchase of equipment etc., without Government approval upto Rs. The annual profit is also recorded superior and therefore, the industrial presence is recorded to be on a completely global scale. The Board of Directors of these CPSEs have the powers to structure and implement schemes relating to personnel and human resource management, training, voluntary or compulsory retirement schemes, etc. Maharatna PSUs Criteria required to procure a Maharatna status for CPSEs. Review Of The Performance Of Navratna And Miniratna Enterprises—Grant/ Divestment Of Status Thereof. should have made profit in the last three years continuously, the pre-tax profit should have been Rs. 25,000 crore, during the last 3 years. Gross profit as a part of the turnover 5. 18(24)/2003-GM- GL.67 Dated 12th August, 2005) Download (44.2 KB) Category-II CPSEs should have made profit for the last three years continuously and should have a positive net worth. Also, the recent addition in this category is the NBCC (National building … This shows that the company is dependable. Eligibility Criteria for Miniratna (i) Category –I. 15,000 crore, during the last 3 years. Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations. Having Navratna status. 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 enhanced powers. 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. Maharatna Scheme was introduced for Central Public Sector Enterprises (CPSEs), with effect from 19th May, 2010, in order to empower mega CPSEs to expand their operations and emerge as global giants.The objective of the scheme is to delegate enhanced powers to the Boards of identified large-sized Navratna CPSEs so as to facilitate expansion of their operations, both in domestic as well … Criteria for Grant of Navratna Status to CPSEs: The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having composite score of 60 or above in following six selected performance indicators are eligible to be considered for grant of Navratna status. The new objective of the ‘Maharatna’ scheme is to empower mega CPSEs to expand their operations and emerge as global giants. The overall ceiling on such investments in all projects put together will not exceed 30% of the net worth of the concerned CPSE. 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