What Are The Navratna And Minirantna Companies In India?

Miniratna and Navratna Companies in India: The Public Sector Undertakings in India offer numerous PSU job opportunities to engineering graduates through the GATE exam. These PSUs are further categorized into Miniratna and Navratna companies in India, which hold significant importance in various sectors such as energy, engineering, mining, defence, and finance. These Central Public Sector Enterprises (CPSEs) are categorized based on certain eligibility criteria, such as annual turnover, net worth, performance, and financial stability.

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What are the Navratna Companies in India?

Navratna Companies Eligibility Criteria

• The company must fall under Miniratna Category I status, and should be listed under the Schedule A listing of CPSEs.
• The company must have had an exceptional rating under the Memorandum of Understanding System for three out of five years before applying.
• Moreover, in order to qualify as Navratna Companies in India, the companies must meet certain criteria based on six key components.
• These parameters include net profit to net worth, PBDIT (Profit Before Depreciation, Interest, and Taxes) to capital employed, manpower cost to cost of production or services, gross margin as capital expenditure, gross profit as turnover, and earnings per share.

• To be eligible for Navratna company name status, a company must achieve a minimum score of 60 or higher based on these performances.

How many Navratna Companies are in India?

Benefits of Navratna Companies in India

• When compared to Miniratna PSUs , the Navratna companies in India have greater financial and operational independence.
• As a result, they become eligible to invest up to INR 1,000 crore, or 15 percent of their net worth, in any single project or deal without any approval from the Government of India.
• Additionally, Navratna companies in India have the authority to invest up to 30 percent of their net worth within a year, considering they do not exceed the INR 1,000 crore limit.
• Navratna companies have the freedom to participate in joint ventures, form alliances, and establish subsidiaries in foreign countries.

What are Miniratna PSUs in India?

Miniratna Companies Eligibility Criteria

• Miniratna Companies, Category I: Before applying, a company must have consistently made a profit over the previous three years. Additionally, a company needs to have had a pre-tax profit of at least INR 30 crore in at least one of the previous three years or have had a three-year average annual turnover of at least INR 120 crore.
• Miniratna Companies, Category II: Companies must have made a profit in each of the last three years, generated a pre-tax profit of at least INR 20 crore in one of those years, or maintained an average yearly revenue of at least INR 80 crore during the last three years in order to be considered for Miniratna company.

List of Miniratna Companies in India

Miniratna and Navratna Companies Salary Structure