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!
Miniratna
"Mini" means small and "Ratna" means jewel. These are small but valuable companies!
Navratna
"Nav" means nine and "Ratna" means jewel. Originally, there were nine companies with this title!
Maharatna
"Maha" means great and "Ratna" means jewel. These are the biggest and most successful companies!
Let's learn more about each type!
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
Hindustan Shipyard Limited
Builds and repairs ships
National Seeds Corporation
Provides quality seeds to farmers
North Eastern Electric Power Corporation
Generates electricity
HLL Lifecare Limited
Makes healthcare products
There are about 73 Miniratna companies in India!
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
Bharat Electronics Limited
Defense equipment
NBCC (India) Limited
Construction company
Shipping Corporation of India
Shipping services
NMDC Limited
Mining company
There are currently 26 Navratna companies in India!
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
Indian Oil Corporation
India's largest oil company
Oil and Natural Gas Corporation
India's largest oil and gas exploration company
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
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.
For Jobs
These companies employ lakhs of people across India, providing good jobs and helping families earn a living.
For Innovation
With more freedom to make decisions, these companies can develop new technologies and better ways of doing things.
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!
