The guidelines are being planned to assess the classification and performance of Navratna, Maharatna and Minratna of the Central Public Enterprises Area (CPSE). According to the government official of the matter, the central government can also present the way to reduce the CPSE status in the event of a demonstration.
The official said, ‘The goal of this change is to improve the full quality and efficiency of CPSE. Currently CPSE has four categories. The government is working for the revised draft. In this sequence, its performance can be reduced based on the performance of CPSE – this criterion is not yet available. The move is expected to be more responsible and performing in the public sector. ‘
Currently, there are 14 Maharatna CPSEs and 26 Navratna CPSEs in India. Union Finance Minister Nirmala Sitharaman had recorded four CPSEs – Railtail Corporation of India, Solar Energy Corporation of India, Sutlej Jal Vidyut Nigam and National Hydroelectric Power Corporation – and made Navratna improved. The Central Government had increased the status of Indian Railways and Tourism Corporation Limited (IRCTC) and Indian Rail Finance Corporation Limited (IRFC) from Miniratna to Navratna last month.
CPSE paid the highest dividend of Rs 74,016 crore to the government so far in FY 2024-25. The leading CPSE Coal India (Rs 10,252 crore), ONGC (Rs 10,001 crore), Indian Oil Corporation (Rs 5,090 crore), India’s Power Grid Corporation (Rs 4,824 crore) and NTPC Limited (Rs 4,088 crore) are the leading CPSE Coal India (Rs 10,001 crore), Indian Oil Corporation (Rs 5,090 crore).
In recent years, the trend of giving more dividends of CPSE continues. In this sequence, the central government received Rs 63,749 crore in 2023-24, Rs 59,533 crore in 2022-23 and Rs 39,750 crore in 2020-21. It is mandatory for the status of Maharatna that it should be listed on India’s stock exchange and has a minimum of 25 percent public shareholding under SEBI guidelines. The government company should have an average annual turn -over in the last three years, more than Rs 25,000 crore, an average of net worth of Rs 15,000 crore annually and the net profit after annual tax should be more than Rs 5,000 crore. Even more important is that his important global appearance or international operations should be. The Maharatna scheme was launched in 2010. Its goal is to empower large CPSEs and expand their operations and develop them as global stalwarts.
The government gives the status of Navratna to CPSE, which achieves ‘best’ or ‘very good’ compromise memorandum rating three times in the last five years. Their six selected performance indicators should be 60 or more. These indicators include net profit- to net value, cost of human labor in total production/services- production after depreciation, interest and tax of employed capital and tax, pre-profit and tax from tax to turnover, income per share and inter-regional performance per share. The Navratna scheme was launched in 1997 so that CPSE would become a global veteran by getting comparative benefits and help. Under this scheme, the board of Navratna CPSE has been provided autonomy and has been given more powers such as capital expenditure, joint investment, merger and acquisition and human resource management in joint undertakings / subsidiaries.
First Published – April 14, 2025 | 10:28 PM IST
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