Public Sector Undertaking(PSU)

Public sector undertakings (PSUs) are Maharatnas, Navratna’s, and Mini Ratna’s.The criteria to be considered as Maharatnas are Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations, Have an average annual turnover of more than Rs.25, 000 crores during the last 3 years, Have an average annual net worth of more than Rs.15, 000 crore during the last 3 years. Have an average annual net profit after tax of more than Rs.5, 000 crore during the last 3 years, and should have significant global presence/international operations. The Boards of Maharatna PSUs will have powers to i) make equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad, ii) undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth of the concerned PSU in one project, limited to an absolute ceiling of Rs.5, 000 crore (Rs. 1,000 crore for Navratna PSUs). The overall ceiling on such equity investments and mergers and acquisitions in all projects put together will not exceed 30% of the net worth of the concerned PSU. Following 7 PSU were granted the status of maharatnas:i. Bharat Heavy Electricals (BHEL) ii. Coal India iii. Gas Authority of India Limited (GAIL) iv. Indian Oil Corporation (IOC) v. Oil and Natural Gas Company (ONGC) vi. National Thermal Power Company (NTPC) vii. Steel Authority of India Limited (SAIL) .The eligibility criteria for a Navratna status are:The PSUs, which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years, are eligible. ‘Composite Score’ of performance has to be 60 or above. In order to review the performance of the PSU Coaching Centre In Kochi, a composite score based on its performance for the last three years would be calculated. PSU’s granted Navratna status are i. Bharat Electronics Limited ii. Bharat Petroleum Corporation Limited iii. Hindustan Aeronautics Limited iv. Hindustan Petroleum Corporation Limited v. Mahanagar Telephone Nigam Limited vi. National Aluminum Company Limited vii. Neyveli Lignite Corporation Limited viii. NMDC Limited ix. Oil India Limited x. Power Finance Corporation Limited xi. Power Grid Corporation of India Limited xii. Rashtriya Ispat Nigam Limited xiii. Rural Electrification Corporation Limited xiv. Shipping Corporation of India Limited xv. Engineers India Limited xvi. Container Corporation of India xvii. National Buildings Construction Corporation Limited .Below the Navratnas are two categories of Miniratna’s. There are 56 companies in the Miniratna I category and 17 companies in Miniratna II category. The eligibility conditions and criteria for grant of Miniratna status are as under: i. Category-I PSUs should have made profit in the last three years continuously, the pretax profit should have been Rs.30 crore or more in at least one of the three years and a positive net worth. ii. Category-II PSUs should have made profit for the last three years continuously and should have a positive net worth. iii. These PSUs 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. iv. These PSUs shall not depend upon budgetary support or Government guarantees. v. The Boards of these PSUs should be restructured by inducting at least three nonofficial Directors as the first step before the exercise of enhanced delegation of authority. vi. The administrative Ministry concerned shall decide whether a Public Sector Firms fulfilled the requirements of a Category-I/Category-II company before the exercise of enhanced powers.

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