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:
- Coal India: ₹10,252 crore
- ONGC: ₹10,001 crore
- Indian Oil Corporation: ₹5,090 crore
- Power Grid Corporation of India: ₹4,824 crore
- 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.