Maharatna Navratna and Miniratna companies

Understanding Miniratna, Navratna and Maharatna Companies in India

What are Maharatna Navratna and Miniratna companies

Miniratna, Navratna, and Maharatna

Miniratna

Navratna

Maharatna

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What are these special companies?

In India, the government owns many companies that provide important services and products to people. These are called Public Sector Undertakings (PSUs).

The best performing PSUs are given special titles based on how well they do. Think of these titles like medals or badges of honor!

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Miniratna

"Mini" means small and "Ratna" means jewel. These are small but valuable companies!

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Navratna

"Nav" means nine and "Ratna" means jewel. Originally, there were nine companies with this title!

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Maharatna

"Maha" means great and "Ratna" means jewel. These are the biggest and most successful companies!

Let's learn more about each type!

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Miniratna Companies

What makes a company a Miniratna?

Miniratna companies are smaller government companies that have shown they can make good profits for at least 3 years in a row.

They are divided into two categories:

Category I

Companies that have made profits for the last 3 years continuously and have a positive net worth (value).

Category II

Companies that have made profits for the last 3 years continuously but are smaller than Category I companies.

What special powers do they get?

  • They can spend some money (up to ₹500 crore) on projects without asking the government for permission.
  • They can form partnerships with other companies.
  • They can decide how to use some of their money for growth.

Examples of Miniratna Companies

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Hindustan Shipyard Limited

Builds and repairs ships

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National Seeds Corporation

Provides quality seeds to farmers

North Eastern Electric Power Corporation

Generates electricity

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HLL Lifecare Limited

Makes healthcare products

There are about 73 Miniratna companies in India!

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Navratna Companies

What makes a company a Navratna?

Navratna companies are bigger and more successful than Miniratnas. They are the middle tier of India's special government companies.

To become a Navratna, a company must:

  • Have already been a Miniratna Category I company or made profits in the last 3 years
  • Be a very important company in its industry
  • Have a significant presence in its market

What special powers do they get?

More Financial Freedom

They can spend up to ₹1000 crore on projects without asking the government for permission.

Strategic Alliances

They can form partnerships with foreign companies.

More Decision-Making Power

They can make more decisions about how to run their business without government approval.

Examples of Navratna Companies

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Bharat Electronics Limited

Defense equipment

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NBCC (India) Limited

Construction company

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Shipping Corporation of India

Shipping services

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NMDC Limited

Mining company

There are currently 26 Navratna companies in India!

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Maharatna Companies

What makes a company a Maharatna?

Maharatna companies are the biggest and most successful government companies in India. They are like the champions among all PSUs!

To become a Maharatna, a company must:

  • Already be a Navratna company
  • Have an average annual turnover (total sales) of more than ₹25,000 crore in the last 3 years
  • Have an average annual net worth (value) of more than ₹15,000 crore in the last 3 years
  • Have an average annual net profit of more than ₹5,000 crore in the last 3 years
  • Have significant global operations (business in other countries too)

What special powers do they get?

Maximum Financial Freedom

They can invest up to ₹5,000 crore without government approval - that's 5 times more than Navratna companies!

Global Expansion

They can expand their business to other countries more easily.

Strategic Decisions

They have more freedom to make big business decisions on their own.

Examples of Maharatna Companies

NTPC Limited

India's largest power generation company

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Indian Oil Corporation

India's largest oil company

Oil and Natural Gas Corporation

India's largest oil and gas exploration company

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Steel Authority of India Limited

One of India's largest steel producers

There are currently 14 Maharatna companies in India!

Comparing the Three Categories

Feature Miniratna Navratna Maharatna
Number of Companies ~65 16 12
Investment Power Up to ₹500 crore Up to ₹1,000 crore Up to ₹5,000 crore
Size Small to Medium Medium to Large Very Large
Global Presence Limited Moderate Significant

The Journey of a PSU

Regular PSU

A normal government-owned company

Every PSU starts as a regular government company

If it performs well for 3 years and meets criteria

Miniratna

The first level of recognition

Navratna

The middle level of recognition

If it continues to grow and becomes more important

If it becomes very large and globally significant

Maharatna

The highest level of recognition

Why These Categories Matter

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For Our Country

These special companies help India's economy grow. They provide important services like electricity, oil, transportation, and more to millions of people.

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For Jobs

These companies employ lakhs of people across India, providing good jobs and helping families earn a living.

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For Innovation

With more freedom to make decisions, these companies can develop new technologies and better ways of doing things.

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For Global Presence

These companies represent India on the world stage, competing with big international companies and making our country proud.

Let's Recap What We Learned

1 Public Sector Undertakings (PSUs)

These are companies owned by the Indian government that provide important services to people.

2 Three Special Categories

Miniratna: Smaller but profitable government companies (~65 companies)

Navratna: Medium to large important government companies (16 companies)

Maharatna: The biggest and most successful government companies (12 companies)

3 Special Powers

Companies in these categories get more freedom to make decisions without asking the government for permission. The higher the category, the more freedom they get!

4 Importance

These special companies help India's economy grow, create jobs, develop new technologies, and represent India globally.

Did You Know?

The "Ratna" (jewel) classification system was started in 1997 to give more freedom to India's best performing government companies!

Learning About India's Special PSU's!

Now you know about Miniratna, Navratna, and Maharatna companies and why they're important for our country.

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