When you think of India’s economic powerhouses, the Maharatna companies are at the top. These companies are the crown jewels of India’s Public Sector Undertakings (PSUs), leading the way in sectors like energy, oil, steel and finance. Let us dive into the list of Maharatna companies in India for 2024 and explore their significance.
What Are The Different Types of Central Public Sector Enterprises?
Central Public Sector Enterprises (CPSEs) in India are categorised into three primary types based on certain eligibility criteria. They are:
1. Miniratna Companies
Miniratna Category-I Companies
CPSEs must have made profits continuously for the last three years and have a pre-tax profit of ₹30 crore or more in at least one of the three years. Thus, they should also have a positive net worth.
Miniratna Category-II Companies
These are CPSEs that have recorded profits for the last three consecutive years and maintain a positive net worth, without defaulting on any government loans or interest payments. But importantly, they should not require budgetary support or government guarantees.
2. Navratna Companies
To qualify as a Navratna, a CPSE must first have the Miniratna-I status. Additionally, it must have received an “Excellent” or “Very Good” Memorandum of Understanding (MoU) rating for three out of the last five years and achieve a composite score of 60 or more out of 100 on six performance indicators, which include Net Profit to Net Worth, Manpower Cost to Total Cost of Production, and more.
3. Maharatna Companies
CPSEs eligible for Maharatna status must already be Navratna-rated, listed on Indian stock exchanges, and comply with minimum shareholding norms. They should have an average annual turnover of more than ₹25,000 crore, an average annual net worth of over ₹15,000 crore, and an average annual net profit of over ₹5,000 crore over the last three years, along with a significant global presence.
What Is A Maharatna Company?
Now that you know about the different types of CPSEs, let’s understand the meaning of a maharatna company in detail.
The term “Maharatna” literally means “big gem,” symbolising the value these companies hold for the nation. They are the largest and most influential government-owned enterprises, known for their massive scale, financial strength and strategic importance.
List Of Maharatna Companies In India 2024
As of 2024, India has 13 Maharatna companies. Here’s the complete list:
1. Bharat Heavy Electricals Limited (BHEL)
Established in 1964, BHEL is the backbone of India’s power generation sector. They supply equipment for power plants, making them important for India’s energy infrastructure. It is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors.
2. Bharat Petroleum Corporation Limited (BPCL)
BPCL is a state-owned Indian oil and gas company and a maharatna company. Established in 1977, BPCL operates in the upstream, midstream and downstream petroleum sectors. It has a refining capacity of over 35 million metric tonnes per annum and a market share of around 23% in the Indian fuel market.
It is also a leading player in the liquefied petroleum gas (LPG) and bitumen business. It is headquartered in Mumbai and is one of the largest public sector undertakings in India.
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3. Coal India Limited (CIL)
As the largest coal producer in the world, CIL plays an important role in the Indian energy sector, supplying coal to various industries, including power, steel, and cement. The company’s vast coal reserves and efficient production capacities make it a major contributor to India’s GDP and employment generation.
4. GAIL India Limited
GAIL is India’s largest natural gas company, operating an extensive pipeline network that delivers gas across the country. Established in 1984, it is owned by the Government of India. GAIL is primarily involved in the transmission of natural gas, coal bed methane and other hydrocarbons. The company has a huge pipeline network of over 7,000 kilometers, connecting all the major gas fields, refineries and marketing terminals in the country. With revenue exceeding $10 billion, it is one of the most well-established energy companies, in India’s energy landscape.
5. Hindustan Petroleum Corporation Limited (HPCL)
Hindustan Petroleum Corporation Limited (HPCL) is a Maharatna company, listed on the National Stock Exchange and the Bombay Stock Exchange. As a public sector undertaking, HPCL is engaged in refining, downstream businesses and exploration of oil & gas resources. The company was listed on the stock exchanges in 1979 and has since grown to become one of the largest oil & gas companies in India.
6. Indian Oil Corporation Limited (IOCL)
IOCL is India’s largest commercial enterprise, involved in every aspect of the oil industry, from exploration to retail. Established in 1958, IOCL is the largest commercial enterprise in India. It is engaged in refining, marketing and distributing petroleum products. IOCL is among the seven Maharatna companies in India, recognised by the Central Public Sector Enterprises (CPSE) for its exceptional performance and growth. So, with a global resource base, IOCL caters to a vast customer base in India, providing a wide range of petroleum products, including petrol, diesel, jet fuel and LPG.
7. NTPC Limited
National Thermal Power Corporation (NTPC) is India’s largest power generation company, responsible for producing a major portion of the country’s electricity. With an installed capacity of over 38,000 MW, it is one of the largest thermal power-generating companies in the country. NTPC was incorporated in 1975 as a public sector undertaking under the Ministry of Power, Government of India. The company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India and has paid-up equity capital of over ₹63,000 crores. NTPC’s operations are spread across the country, with a presence in 19 states.
8. Oil & Natural Gas Corporation Limited (ONGC)
Oil and Natural Gas Corporation Limited (ONGC) is a Maharatna company, which is the largest producer of crude oil and natural gas in India, contributing around 70% of the country’s domestic production.
It is headquartered in Dehradun, Uttarakhand. Founded in 1958, ONGC is a leading hydrocarbon exploration and production company in the country. Its major operations include the exploration, production and transportation of crude oil, natural gas and liquefied petroleum gas.
9. Power Finance Corporation (PFC)
PFC provides financial assistance to the power sector, supporting the growth and development of India’s energy infrastructure. It is a leading non-banking financial company (NBFC) in India and has been accorded the prestigious “Maharatna” status by the Government of India. As per the official press release, PFC was granted this status on October 12, 2021, making it the 11th state-owned company to receive this recognition.
10. Power Grid Corporation of India Limited
Established in 1989, Powergrid is responsible for the transmission of bulk electricity in India. It has been recognised for its achievements, including the construction of the world’s largest extra-high voltage transmission system, with a capacity of 765 kV.
11. Steel Authority of India Limited (SAIL)
SAIL is the largest steel-making company in India, producing the steel that forms the backbone of the country’s infrastructure. It is a PSU that specialises in the production of steel and other steel-related products. Established in 1954, it is one of the oldest steel companies in India and one of the major steel-producing companies in the country.
12. Rural Electrification Corporation Limited (REC)
REC focuses on financing and promoting power projects in rural areas, helping bring electricity to remote parts of India.
It has been accorded the status of a ‘Maharatna’ Central Public Sector Enterprise (CPSE) by the Government of India. This prestigious designation was granted to REC in September 2022, making it the 12th company to achieve this coveted status. REC’s elevation to Maharatna status shows its strategic importance and financial strength in the power sector.
13. Oil India Limited (OIL)
OIL is involved in the exploration and production of crude oil and natural gas, contributing to India’s energy sector. Oil India Limited, commonly referred to as OIL, is a ‘Maharatna company’ and a Major Integrated Oil and Gas Company in India. It is listed on the BSE and NSE. Established in 1959, OIL is one of the largest upstream oil and gas companies in the country.
Role Of Maharatna Companies In India’s Economy
Maharatna companies are more than just businesses; they are pillars of India’s economy. Here’s how they contribute:
1. Driving Economic Growth
These companies invest in large-scale projects that create jobs, boost other industries and fuel economic development.
2. Innovation Leaders
Maharatna companies can keep new technologies, keeping India competitive on the global stage.
3. Global Presence
Many of these companies operate internationally, showing India’s business capabilities worldwide.
4. Strategic Importance
They operate in crucial sectors like energy, defense, and infrastructure, which are vital for national security and development.
5. Employment Generators
These companies provide jobs to millions, directly and indirectly, across various sectors.
Wrapping Up
The Maharatna companies in India are not just businesses; they are the driving force behind the country’s economic growth and development. From powering homes to building infrastructure and representing India on the global stage, these companies play an important role in shaping the nation’s future. As India continues to grow, the contributions of these Maharatna companies will remain invaluable.
FAQs
What is a Maharatna company?
A Maharatna company is a large government-owned enterprise in India with extensive operations and significant influence in its sector.
How many Maharatna companies are there in India?
As of 2024, there are 13 Maharatna companies in India.
Which sectors do Maharatna companies operate in?
Maharatna companies operate in various sectors, including energy, oil and gas, steel, finance and infrastructure.
What are the criteria for a company to become a Maharatna?
A company must meet specific financial and operational criteria, including high turnover, profitability, and global presence, to attain Maharatna status.
Why are Maharatna companies important to the Indian economy?
Maharatna companies are key for driving economic growth and creating jobs.
Are Maharatna companies involved in global operations?
Yes, many Maharatna companies have significant global operations, improving their influence and competitiveness all over the world.
How do Maharatna companies contribute to social development?
Maharatna companies invest in corporate social responsibility (CSR) projects, supporting education, healthcare and community development.
Which is the largest Maharatna company in India?
Indian Oil Corporation Limited (IOCL) is the largest Maharatna company in terms of revenue and scale of operations.
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