Context:
Ircon International Limited (IRCON) and RITES Ltd, both are Central Public Sector Enterprise under the Ministry of Railways, have been granted Navratna Status (16 companies as of now under Navratna Status).
About Maharatna:
- Category of Central Public Sector Enterprise (CPSE) introduced in 2010.
- Eligibility Criteria –
- Net profit for 3 years: ₹ 5,000 crores
- Annual turnover for 3 years: ₹ 25,000 crores
- Net worth for 3 years: ₹ 15,000 crore
- CPSE should have Navratna status.
- Must be listed on Indian stock exchange.
- Significant global presence
About Navratna:
- Central Public Sector Enterprises (CPSEs) introduced in 1997.
- Eligibility Criteria –
- Miniratna I Schedule A status required.
- Must achieve minimum 60/100 score in net worth, net profit, production cost, manpower cost, service cost, capital employed, and PBDIT.
- Obtained ‘excellent’ or ‘very good’ rating in 3 out of last 5 years
- Must have 4 independent board directors
- Freedom to invest an amount of up to ₹1,000 crores without requiring government approval.
About Miniratnas:
- CPSEs which have made profits in the last continuous 3 years.
- 2 categories –
- Miniratna Category-I status:
- Made profit in the last 3 years continuously
- Pre-tax profit is Rs.30 crores or more in at least 1 of the 3 years
- Having Positive net worth status
- Miniratna Category-II status:
- Made profit for the last 3 years continuously
- Having positive net worth status.
- Not defaulted in the repayment of loans/interest payment on any loans due to the Government.
- Not dependent upon budgetary support or Government guarantees.
Source: PIB
Previous Year Question
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/ are correct?
[UPSC Civil Services Exam – 2011 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (d)
