About PSU’s

Public Sector Undertaking

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU. PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector banks (PSBs) or State Level Public Enterprises (SLPEs). CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises.

Various PSUs have been awarded additional financial autonomy. These companies are “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”.Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997.Originally, the term Navaratna meant a talisman composed of nine precious gems. Later, this term was adopted in the courts of Gupta emperor Vikramaditya and Mughal emperor Akbar, as the collective name for nine extraordinary courtiers at their respective courts. In 2010, the government established the higher Maharatna category, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore.The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Two categories of “Miniratnas” afford less extensive financial autonomy.

 

LIST OF PUBLIC SECTOR UNDERTAKING’S

As on 30 September 2015 there are 7 Maharatnas, 17 Navratnas and 73 Miniratnas

MAHARATNA

Eligibility :

Three years with an average annual net profit of over Rs. 2500 crore (earlier was 5,000 Cr), OR Average annual Net worth of Rs. 10,000 crore for 3 years (earlier was 15,000 Cr), OR Average annual Turnover of Rs. 20,000 crore for 3 years (earlier was 25,000 Cr)

Benefits for investment :

Rs. 1,000 crore – Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project

NAVRATNA

Eligibility :

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., AND

A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

Benefits for investment :

Rs. 1,000 crore – Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project

MINIRATNA

Eligibility :

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

Have made profits continuously for the last three years and should have a positive net worth.

Benefits for investment :

up to Rs. 500 crore or equal to their net worth, whichever is lower.

up to Rs. 300 crore or up to 50% of their net worth, whichever is lower.

List of Miniratna Companies
Airports Authority of India Antrix Corporation
Balmer Lawrie & Co. Ltd. Bharat Coking Coal Ltd.
Bharat Dynamics Ltd. BEML Ltd.
Bharat Sanchar Nigam Ltd. Bridge & Roof Company (India) Ltd.
Central Warehousing Corporation Central Coalfields Ltd.
Chennai Petroleum Corporation Cochin Shipyard Ltd.
Dredging Corporation of India Kamarajar Port Ltd.
Garden Reach Shipbuilders & Engineers Ltd. Goa Shipyard Ltd.
Hindustan Copper Ltd. HLL Lifecare Ltd.
Hindustan Newsprint Ltd. Hindustan Paper Corporation
Housing & Urban Development Corporation India Tourism Development Corporation
India Trade Promotion Organisation Indian Rare Earths Ltd.
Indian Railway Catering and Tourism Corporation IRCON International Ltd.
KIOCL Ltd. Manganese Ore (India) Ltd.
Mishra Dhatu Nigam Ltd. NHPC Ltd.
Northern Coalfields Ltd. Numaligarh Refinery Ltd.
Railtel Corporation of India Rail Vikas Nigam Ltd.
RITES Ltd. and many more . . .