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.