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Centre to revamp guidelines for Ratna CPSEs to improve performance

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Revised Guidelines for CPSEs

The Indian government is planning to update the guidelines for classifying and assessing the performance of Central Public Sector Enterprises (CPSEs). The revision may include a new provision to downgrade a CPSE if its performance declines, enhancing accountability and performance-driven governance.

Classification of CPSEs

  • The CPSEs are categorized into four groups: 
    • Maharatna
    • Navratna
    • Mini Ratna Category 1
    • Mini Ratna Category 2

Current Status

  • India has 14 Maharatna and 26 Navratna CPSEs.
  • Recent upgrades include: 
    • Railtel Corporation of India, Solar Energy Corporation of India, Satluj Jal Vidyut Nigam, and National Hydroelectric Power Corporation to Navratna status.
    • IRCTC and IRFC from Miniratna to Navratna.

Dividend Payouts

  • CPSEs delivered their highest-ever dividend payout in FY25, totaling ₹74,016 crore.
  • Major contributors included: 
    1. Coal India: ₹10,252 crore
    2. ONGC: ₹10,001 crore
    3. Indian Oil Corporation: ₹5,090 crore
    4. Power Grid Corporation of India: ₹4,824 crore
    5. NTPC Ltd: ₹4,088 crore
  • This is part of an upward trend in dividends over recent years.

Criteria for CPSE Status

Maharatna Criteria

  • Listed on an Indian stock exchange with a minimum public shareholding of 25% as per Sebi regulations.
  • Average annual turnover of more than ₹25,000 crore.
  • Average annual net worth of more than ₹15,000 crore.
  • Average annual net profit after tax of over ₹5,000 crore in the last three years.
  • Significant global presence or international operations.

Navratna Criteria

  • Excellent or very good MoU rating in three of the last five years.
  • Composite score of 60 or above in six selected performance indicators.

Miniratna Criteria

  • Category I Miniratnas: Profit in the last three years with a pre-tax profit of ₹30 crore or more in one of them, and a positive net worth.
  • Category II Miniratnas: Profit in the last three years with a positive net worth.
  • Should not default on loan repayments or rely on government support.
  • Tags :
  • Miniratna
  • Navratna
  • Maharatna
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