Lok Sabha Question No. 57 (UNSTARRED), answered on 2015-07-21
Subject: Maharatna and Navratna Companies
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: ABHISHEK SINGH

## GOVERNMENT OF INDIA DEPARTMENT OF PUBLIC ENTERPRISES

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES ***** LOK SABHA UNSTARRED QUESTION NO. 57 TO BE ANSWERED ON THE 21 st  JULY, 2015

## Maharatna and Navratna Companies

57. SHRI ABHISHEK SINGH:

Will  the  Minister  of  HEAVY  INDUSTRIES  AND  PUBLIC  ENTERPRISES  be  pleased  to state:

- (a) the total number of companies which have been bestowed 'Maharatna' and 'Navratna' status by the Government along with the criteria for granting such status to companies

during the last three years and the current year; (b) the details of the 'Maharatna' and 'Navratna' companies whose performance have been below par with respect to above said standards during the last three years; (c) whether the Government proposes to withdraw 'Maharatna' and 'Navratna' status from the  companies  whose  performance  is  below  such  standards  and  if  so,  the  details thereof; and (d) whether the Government proposes to grant 'Maharatna' and 'Navratna' status to some

- more companies and if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI G.M. SIDDESHWARA)

(a)  to (d) : A statement is laid on the Table of House.

*****

## Statement referred to in reply to Lok Sabha Unstarred Question No. 57 for answer on 21 st July, 2015 regarding Maharatna and Navratna Companies

(a) : Two Central Public Sector Enterprises (CPSEs) have been granted Maharatna status and three CPSEs have been granted Navratna status during the last three years (2012, 2013 and 2014) and the current year.

As per the eligibility criteria laid down by the Government, the following CPSEs are eligible to be considered for grant of Maharatna status.

- (i)  Having Navratna status.
- (ii)  Listed  on  Indian  stock  exchange  with  minimum  prescribed  public  shareholding under SEBI regulations.
- (iii)  Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
- (iv)  Average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
- (v) Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.
- (vi)  Should have significant global presence/international operations.

As per the criteria laid  down by the Government, the Miniratna Category  - I and Schedule  'A'  CPSEs,  which  have  obtained  'excellent'  or  'very  good'  rating  under  the Memorandum of Understanding system in three of the last five years, and have composite score of 60 or above in the six selected performance parameters, namely, (i) net profit to net  worth,  (ii)  manpower  cost  to  total  cost  of  production/services,  (iii)  profit  before depreciation, interest and taxes to capital employed, (iv) profit before interest and taxes to turnover,  (v)  earning  per  share  and  (vi)  inter-sectoral  performance  are  eligible  to  be considered for grant of Navratna status.

(b) and (c) : As per extant guidelines, the performance of Maharatna and Navratna CPSEs is  to  be  reviewed  by  the  Inter  Ministerial  Committee  (IMC)  and  thereafter  by  the  Apex Committee. The review by IMC/Apex Committee, inter-alia, takes into account  conformity of  these  CPSEs with laid down criteria for grant of Maharatna and Navratna status and Apex  Committee  makes  the  recommendations  for  divestment  of  Maharatna/Navratna status on the basis of such review. The IMC has reviewed the performance of Maharatna and Navratna CPSEs.

(d)  :  As  per  laid  down  procedure,  the  proposals  for  grant  of  Navratna  and  Maharatna status  are  considered  by  the  Inter-Ministerial  Committee  and  thereafter  by  the  Apex Committee.  Maharatna  and  Navratna  status  is  granted  to  CPSEs  on  the  basis  of recommendations of Apex Committee and this is a continuous process.

*****