In an economy like India, smaller enterprises such as the Miniratna companies play an important role in its growth. In fact, all public sector companies stand out as the unsung heroes, quietly driving progress across sectors like telecommunications, defence and aviation. But what exactly makes these companies special? Let’s find out.
What are the Different Types of CPSEs?
The term “Maharatna”, “Navratna” and “Miniratna” are terms used by the Indian Government to classify its Central Public Sector Enterprises (CPSEs) based on their performance, importance and the level of autonomy they get from the government. “Maharatna” is the highest classification, followed by “Navratna” and then “Miniratna”.
As of August 2024, there are 13 Maharatna, 21 Navratna and 64 Miniratna companies (53 Category I Miniratna companies and 11 Category II Miniratna companies).
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What are Miniratna Companies?
Miniratna companies are a special category of government-owned enterprises in India that show strong financial performance. The Indian government grants these companies greater autonomy and financial independence to help them operate more effectively and compete with private sector firms. These companies are essential in driving economic growth across various sectors, including telecommunications, aviation, defence and engineering.
What are the Categories of Miniratna Companies?
Miniratna companies in India are divided into two categories based on their financial performance and eligibility criteria:
Miniratna Category I:
Companies in this category must have earned a net profit of at least ₹30 crore in at least one of the last three years and maintained consistent profitability over this period. They enjoy greater financial autonomy, allowing them to make investments up to ₹500 crore without government approval.
Miniratna Category II:
These companies are required to have a consistent profit record over the last three years and maintain a positive net worth. They are allowed to invest up to ₹300 crore or 50% of their net worth, whichever is lower.
List of Miniratna Companies in India 2024
Miniratna I CPSEs
- Airports Authority of India
- Antrix Corporation Limited
- Balmer Lawrie & Co. Limited
- Bharat Coking Coal Limited
- Bharat Dynamics Limited
- Bharat Earth Movers Limited (BEML)
- Bharat Sanchar Nigam Limited
- Braithwaite & Company Limited
- Bridge & Roof Company (India) Limited
- Central Coalfields Limited
- Central Mine Planning & Design Institute Limited
- Chennai Petroleum Corporation Limited
- Cochin Shipyard Limited
- Cotton Corporation of India Ltd.
- Educational Consultants India Limited (EDCIL)
- Garden Reach Shipbuilders & Engineers Limited
- Grid Controller of India Limited (GRID-INDIA)
- Goa Shipyard Limited
- Hindustan Copper Limited
- Hindustan Steelworks Construction Limited
- Hindustan Latex Limited (HLL) Lifecare Limited
- Hindustan Paper Corporation Limited
- Hospital Services Consultancy Corporation Limited (HSCC)
- India Tourism Development Corporation Limited
- Indian Rare Earths Limited
- Indian Railway Catering & Tourism Corporation Limited
- Indian Railway Finance Corporation Limited
- India Trade Promotion Organization
- Kudremukh Iron Ore Company Limited (KIOCL)
- Mahanadi Coalfields Limited
- Manganese Ore India Limited (MOIL)
- Mangalore Refinery & Petrochemical Limited
- Mineral Exploration Corporation Limited
- Mishra Dhatu Nigam Limited
- Minerals and Metals Trading Corporation (MMTC) Limited
- Metal Scrap Trade Corporation (MSTC) Limited
- National Projects Construction Corporation Limited
- National Small Industries Corporation Limited
- National Seeds Corporation
- National Hydroelectric Power Corporation (NHPC)
- Northern Coalfields Limited
- North Eastern Electric Power Corporation Limited
- Numaligarh Refinery Limited
- Pawan Hans Helicopters Limited
- Projects & Development India Limited
- Railtel Corporation of India Limited
- Satluj Jal Vidyut Nigam (SJVN) Limited
- Security Printing and Minting Corporation of India Limited
- South Eastern Coalfields Limited
- Telecommunications Consultants India Limited
- Tehri Hydro Development Corporation (THDC) India Limited
- Western Coalfields Limited
- Water and Power Consultancy Services (WAPCOS) Limited
Miniratna II CPSEs
- Artificial Limbs Manufacturing Corporation of India
- Bharat Pumps & Compressors Limited
- Broadcast Engineering Consultants India Limited
- Engineering Projects (India) Limited
- Fertilizer Corporation of India (FCI) Aravali Gypsum & Minerals India Limited
- Ferro Scrap Nigam Limited
- Hindustan Machine Tools (HMT) Limited
- Indian Medicines & Pharmaceuticals Corporation Limited
- Metallurgical & Engineering Consultants (MECON) Limited
- National Film Development Corporation Limited
- Rajasthan Electronics & Instruments Limited
Why Are Miniratna Companies Important?
Miniratna companies play an essential role in India’s economy by driving growth across multiple sectors. These companies benefit from greater financial and operational autonomy, allowing them to make decisions more swiftly and effectively than other CPSEs. Their ability to operate independently also makes them more competitive, fostering innovation and helping them better serve the needs of the Indian economy.
Wrapping Up
Miniratna companies in India represent the importance of the public sector. With the operational flexibility they get, such companies are better equipped to compete in a global market. As the country continues to evolve, Miniratna companies will play a key role in shaping India’s economic future.
FAQs
What are Miniratna companies?
Miniratna companies are government-owned enterprises in India that have been granted additional financial and operational autonomy due to their consistent profitability and strong financial performance.
How many Miniratna companies are there in India?
As of August 2024, there are 53 Miniratna Category I companies and 11 Miniratna Category II companies in India.
What is the difference between Miniratna Category I and Category II?
Miniratna Category I companies have greater financial autonomy, allowing them to invest up to ₹500 crore without government approval. Category II companies can invest up to ₹300 crore or 50% of their net worth, whichever is lower.
How does a company become a Miniratna?
To qualify as a Miniratna, a company must have a positive net worth and consistently generate profits over the last three years. Additionally, Category I companies must have a pre-tax profit of at least ₹30 crore in one of those years.
What are the benefits of being a Miniratna company?
Miniratna enterprises enjoy greater autonomy in decision-making as compared to other companies in their industry, allowing them to make strategic investments, form joint ventures, and operate more efficiently than other public sector enterprises.
Can Miniratna companies invest in joint ventures?
Yes, Miniratna companies can form joint ventures and even establish subsidiaries, giving them the flexibility to expand and diversify their operations.
What sectors do Miniratna enterprises operate in?
Miniratna enterprises operate in a wide range of sectors, including telecommunications, aviation, defense, energy and engineering.
Why is the Miniratna status important for public sector companies?
The Miniratna status allows public sector companies to operate with greater independence, making them more competitive and efficient in their respective industries.
How do Miniratna enterprises contribute to India’s economy?
Miniratna enterprises contribute to India’s economy by driving growth, creating jobs, and fostering innovation across multiple sectors.
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