central public sector enterprises (cpses)
TRANSCRIPT
Maharatna Navratna & Miniratna CompaniesCentral Public Sector
Enterprises (CPSEs)
• CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises.
• Central Public Sector Enterprises (CPSEs) are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
• The Department of Public Enterprises (DPE) is the nodal department for all the Central Public Sector Enterprises (CPSEs). DPE formulates policy regarding CPSEs.
Central Public Sector Enterprises (CPSEs)
•
• (CPSEs) , CPSE 51%
• (DPE) (CPSE)
The Government of India categorizes Central Public Sector Enterprises (CPSEs) under three categories of
1. Miniratna (I and II)
2. Navratna
3. Maharatna
This categorization is based on the factors such as turnover, net worth and net profit on the annual basis and the presence of the company in the stock exchange as per the Securities and Exchange Board of India (SEBI) rules.
1. (I and II)
2.
3.
,
Why the special status?
• To give these CSPEs more power and autonomy to compete in the global market so as to “support them in their drive to become global giants”.
• The status enables the company to invest up to certain limits without prior permission from the government.
Why the special status?
• CSPEs " ”
•
The Maharatnas
2. Coal India Limited
4. Indian Oil Corporation Limited (IOCL)
5. National Thermal Power Corporation Limited (NTPC Limited)
6. Oil & Natural Gas Corporation Limited (ONGC)
7. Steel Authority of India Limited (SAIL)
8. Bharat Petroleum Corporation Limited
9. Hindustan Petroleum Corporation Limited
10. Power Grid Corporation of India Limited
1.
2.
3.
4. ()
6.
7.
8.
9.
10.
The Navratnas
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
7. National Buildings Construction Corporation Limited
8. NMDC Limited
10. Oil India Limited
14. Shipping Corporation of India Limited
1.
2.
3.
4.
5.
6.
7. NBCC ()
11.
12.
13.
14.
Criteria for Maharatna status
• Having Navratna status
• Listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations
• An average annual turnover of more than Rs. 20,000 crore during the last three years
• An average annual net worth of more than Rs.10,000 crore during the last three years
• An average annual net profit of more than Rs. 2,500 crore during the last 3 years
• Significant global presence or international operations
1. .
2. .
3. 3 (Average annual turnover) 20,000 .
4. 3 10,000 .
5. 3 ‘ ’ 2,500 .
6. .
Benefit of Maharatna status
• The Maharatna status gives more autonomy and authority to a company than the other categories such as Navratna or Miniratna.
• They can undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 % of net worth
• Maharatna CPSEs can invest from INR 1,000 crore to INR 5,000 crore.
• The Boards of Maharatna central public sector enterprises (CPSEs) can make equity investments to undertake financial joint ventures.
• The Boards can also structure and implement schemes relating to personnel and human resource management and training.
• They can also enter into technology joint ventures or other strategic alliances, among others.
Criteria for Navratna status
• The Miniratna Category – I, 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
1. Net Profit to Net Worth (Maximum: 25)
2. Manpower cost to cost of production or services (Maximum: 15)
3. Gross margin as capital employed (Maximum: 15)
4. Gross profit as Turnover (Maximum: 15)
5. Earnings per Share (Maximum: 10)
6. Inter-Sectoral comparison based on Net profit to net worth (Maximum: 20)
1. 1 5 3 (excellent) '' (very good) .
2. 6 60 . :
I.
II.
III.
IV.
V. ,
VI.
Power for Navratna status
To establish financial joint ventures and wholly owned subsidiaries in India or abroad with the stipulation that the equity investment of the CPSE should be limited to the following:-
a. Rs 1000 crore in any one project
b. 15 % of the net worth of the CPSE in one project
c. 30 % of the net worth of the CPSE in all joint ventures/subsidiaries put together
Criteria for Miniratna status
Category I Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years
Category II Have made profits continuously for the last three years and should have a positive net worth.
Power for Miniratna status
The Categorisation entitles the company boards to do investments up to a limit (depending on the status) without seeking government permission.
Miniratna-I: up to Rs. 500 crore or equal to their net worth, whichever is lower.
Miniratna-II: up to Rs. 300 crore or up to 50% of their net worth, whichever is lower.
;
;
1.
• CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises.
• Central Public Sector Enterprises (CPSEs) are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
• The Department of Public Enterprises (DPE) is the nodal department for all the Central Public Sector Enterprises (CPSEs). DPE formulates policy regarding CPSEs.
Central Public Sector Enterprises (CPSEs)
•
• (CPSEs) , CPSE 51%
• (DPE) (CPSE)
The Government of India categorizes Central Public Sector Enterprises (CPSEs) under three categories of
1. Miniratna (I and II)
2. Navratna
3. Maharatna
This categorization is based on the factors such as turnover, net worth and net profit on the annual basis and the presence of the company in the stock exchange as per the Securities and Exchange Board of India (SEBI) rules.
1. (I and II)
2.
3.
,
Why the special status?
• To give these CSPEs more power and autonomy to compete in the global market so as to “support them in their drive to become global giants”.
• The status enables the company to invest up to certain limits without prior permission from the government.
Why the special status?
• CSPEs " ”
•
The Maharatnas
2. Coal India Limited
4. Indian Oil Corporation Limited (IOCL)
5. National Thermal Power Corporation Limited (NTPC Limited)
6. Oil & Natural Gas Corporation Limited (ONGC)
7. Steel Authority of India Limited (SAIL)
8. Bharat Petroleum Corporation Limited
9. Hindustan Petroleum Corporation Limited
10. Power Grid Corporation of India Limited
1.
2.
3.
4. ()
6.
7.
8.
9.
10.
The Navratnas
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
7. National Buildings Construction Corporation Limited
8. NMDC Limited
10. Oil India Limited
14. Shipping Corporation of India Limited
1.
2.
3.
4.
5.
6.
7. NBCC ()
11.
12.
13.
14.
Criteria for Maharatna status
• Having Navratna status
• Listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations
• An average annual turnover of more than Rs. 20,000 crore during the last three years
• An average annual net worth of more than Rs.10,000 crore during the last three years
• An average annual net profit of more than Rs. 2,500 crore during the last 3 years
• Significant global presence or international operations
1. .
2. .
3. 3 (Average annual turnover) 20,000 .
4. 3 10,000 .
5. 3 ‘ ’ 2,500 .
6. .
Benefit of Maharatna status
• The Maharatna status gives more autonomy and authority to a company than the other categories such as Navratna or Miniratna.
• They can undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 % of net worth
• Maharatna CPSEs can invest from INR 1,000 crore to INR 5,000 crore.
• The Boards of Maharatna central public sector enterprises (CPSEs) can make equity investments to undertake financial joint ventures.
• The Boards can also structure and implement schemes relating to personnel and human resource management and training.
• They can also enter into technology joint ventures or other strategic alliances, among others.
Criteria for Navratna status
• The Miniratna Category – I, 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
1. Net Profit to Net Worth (Maximum: 25)
2. Manpower cost to cost of production or services (Maximum: 15)
3. Gross margin as capital employed (Maximum: 15)
4. Gross profit as Turnover (Maximum: 15)
5. Earnings per Share (Maximum: 10)
6. Inter-Sectoral comparison based on Net profit to net worth (Maximum: 20)
1. 1 5 3 (excellent) '' (very good) .
2. 6 60 . :
I.
II.
III.
IV.
V. ,
VI.
Power for Navratna status
To establish financial joint ventures and wholly owned subsidiaries in India or abroad with the stipulation that the equity investment of the CPSE should be limited to the following:-
a. Rs 1000 crore in any one project
b. 15 % of the net worth of the CPSE in one project
c. 30 % of the net worth of the CPSE in all joint ventures/subsidiaries put together
Criteria for Miniratna status
Category I Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years
Category II Have made profits continuously for the last three years and should have a positive net worth.
Power for Miniratna status
The Categorisation entitles the company boards to do investments up to a limit (depending on the status) without seeking government permission.
Miniratna-I: up to Rs. 500 crore or equal to their net worth, whichever is lower.
Miniratna-II: up to Rs. 300 crore or up to 50% of their net worth, whichever is lower.
;
;
1.