The Government of India categorizes Central Public Sector Enterprises (CPSEs) under three categories of Navratna, Miniratna, and Maharatna company. A group of organisations in the Central Public Sector Enterprises (CPSEs) known as Navratna Companies have increased financial autonomy. Nine public sector undertakings (PSUs) were first given Navratna status by the Indian government in 1997. The number of Navratna Companies has increased over time and now stands at 14.
A company must meet specific requirements in order to be designated as a Navratna by the Indian government. Let’s learn about these companies, their eligibility criteria, and the list of total Navratna Companies in India in detail.
What are Navratna Companies?
Some Central Public Sector Enterprises are given more financial autonomy by the Indian government. These organisations are Navratna Companies.
Navratna Companies are permitted to make investments up to Rs.1,000 crores without requesting express government consent. They may even invest 15% of their net worth in a single project or 30% over the course of an entire year, as long as they stay under the Rs.1,000 crores cap. These businesses have comparative advantages when competing in the international market because of the greater autonomy.
Navratna Companies Criteria
Only nine PSUs initially received Navratna status from the government. All of these organisations were a part of the Central Public Sector Enterprises of the Indian government. There will be 14 organisations with Navratna status overall in 2022. A PSU must meet the requirements set forth by Navratna Companies, which include the following requirements:
- The organisation must score at least 60 out of a possible 100 in each of the following categories: net worth, net profit, the total cost of goods produced, total cost of labour, the total cost of services, capital employed, and PBDIT (Profit Before Depreciation, Interest, and Taxes).
- The company needs to be categorised as a Miniratna.
- There ought to be four impartial board members for the corporation.
India’s Navratna Company List – Overview
These companies have an advantage over their competitors in the global market because of their financial independence. The 14 Indian Navratna companies are described in the following succinctly:
Bharat Electronics Limited (BHEL) – Government-owned BHEL is a manufacturer of weapon systems, radars, electronic voting machines, and other defence and aerospace electronics.
Engineers India Limited (EIL)- EIL offers a wide variety of engineering consultancy & EPC services in a number of industries, including mining, metallurgy, and petroleum refining.
National Buildings Construction Corporation (NBCC) – NBCC is a reputable government corporation that works in the fields of project management consulting (PMC), engineering, procurement, and construction, as well as real estate development (EPC).
Hindustan Aeronautics Limited (HAL) – One of the largest and most established manufacturers of defence and aerospace products is HAL.
Container Corporation of India (CONCOR )- For Indian Railways, this PSU oversees a number of crucial operations, including MMLP operation, terminal operator, cargo carrier, and warehouse operator.
Mahanagar Telephone Nigam Limited (MTNL) – Fixed-line telephones, WLL, and other services are all provided by MTNL, a telecommunications service provider.
National Aluminium Company (NALCO) – NALCO engages in mining, power, and metals industries. It is one of India’s largest integrated bauxite, alumina, aluminium, and power complexes.
Rashtriya Ispat Nigam Limited (RINL) – A significant producer of steel in the nation, RINL runs a mill in Visakhapatnam. Every year, the company produces 7.3 million tonnes of steel.
NLC India Limited (NLC) – The production of lignite from opencast mines in these regions is a concern for NLC, which has operations in Rajasthan and Tamil Nadu.
Oil India Limited (OIL) – Crude oil, natural gas, and liquid petroleum gas are all produced by OIL. Additionally, it is in charge of moving crude oil across the country.
National Mineral Development Corporation (NMDC) – The NMDC is a producer of minerals. It looks at things like limestone, copper, gypsum, and diamond. The largest producer and exporter of iron ore from India is NDMC.
Power Finance Corporation Ltd. – One of the top non-banking financial companies, Power Finance Corporation Ltd., provides both fund- and non-fund-based support for the growth of the Indian power sector.