What are the Navratna and Miniratna companies in India?

In the present time, there is an ever-evolving trend of government jobs across the country. For obvious reasons, CPSEs (Central Public Sector Enterprises) are popular among the youth. In the case of NAVRATNA or MINI RATNA companies, engineers are all ears to grab crucial information about recruitment in these companies. If you are looking for significant details about Navratna or Miniratna PSU companies, then we have come up with a detailed blog post that comprises relevant information associated with these Miniratna and Navratna companies in India.

The Government of India categorizes Central Public Sector Enterprises under three categories: Navratna, Miniratna, and Maharatna companies. A wide range of factors determine the categorization of these CPSEs. This includes annual turnover, net worth, and net profit calculated on an annual basis. Along with this is the presence of the company on the stock exchange list as per the Securities and Exchange Board of India (SEBI) rules.

In the year 1997 (the month of October), the Government of India decided to grant a particular type of status to certain companies and give them more power and autonomy to compete in the global market. The primary aim of the Government of India is to make these PSUs much more competitive and efficient. Therefore, these companies were divided into Category-I and Category-II. These companies hold the right to get upgraded to Navratna PSU status. You can find the eligibility criteria below that the GoI has created to receive the upgrade to the status of Navratna PSU.

1. The company must have the status of Miniratna Category – 1.
2. The Memorandum of Understanding (MoU) scores must fall into ‘Very Good’ or ‘Excellent’ category in three out of five years.
3. The PSU company must obtain a score of 60 or above. It depends on different parameters such as net profit, net worth, total manpower cost, the total cost of production, cost of services, capital employed, profit before interest and taxes to turnover, inter-sectoral performance, and earnings per share.

The third or last category of CPSEs in the Miniratna Company PSU. Apart from this, PSU aspirants must know that Maharatna PSUs and Navratna PSUs rank first and second in the list of the PSUs at the national level. Depending on the factors mentioned above and the annual performance of the respective PSU, it becomes important to understand the significance and upgradation associated with the respective Central Public Sector Enterprises (CPSEs).

 

Categories within Miniratna PSU:

1. Category I CPSEs: These CPSEs have made consistent profits in the last three years. It is important to note that the respective CPSE must have made a net profit of INR (Rs.) 30 crores or more in one of the three previous years.
2. Category II CPSEs: Central Public Sector Enterprises should have made profits in three consecutive years and have a positive net worth.

Apart from this, it is important to note that the respective Central Public Sector Enterprises (CPSEs) must not have defaulted in the repayment of loans in any form. Another important aspect is that the CPSE must not depend on Government guarantees or budgetary support.

Now, let us find out the details associated with the Navratna PSUs and Miniratna PSUs present in our country.

 

What is Navratna?

“Navratna” is the prestigious status that certain companies receive in the public sector. Generally, companies need approval from the central government to invest an enormous amount of money in the respective project or deal. But certain top companies possess the autonomy to invest up to INR 1000 crores without official permission from the central government.

What is Miniratna?

The Indian government introduced the “Miniratna” status “in 1997. Under this scheme, the government decided to grant further financial powers to certain companies that generate reasonable profits (with other parameters mentioned above).

The “Miniratnas” are divided into Category I and Category II. Category I Central Public Sector Enterprises (CPSEs) include companies that have made a pre-tax profit of at least INR 30 million in the last three years and have positive net worth. Category II CPSEs include companies that have made substantial profits in the last three years. Like the first category, these companies must also have positive net worth. There are almost 60 or 15 companies in each of these categories.

 

What is the difference between Maharatna and Navratna?

Certain Public Sector Enterprises receive the status of ‘Maharatna Company’, which ensures that these companies can receive investments up to a value of INR 5000 crore. More than a decade ago, the Government of India introduced the Maharatna category. As mentioned above, companies with Navratna status can receive investments up to a value of INR 1000 crore. Moreover, a Navratna can upgrade into a Maharatna after it has gained an annual profit of INR 5000 crores in the last 3 years with a net worth of INR 15,000 crores. The turnover of INR 25,000 crores in the past 3 years is also considered during the respective status upgrade.

 

How many Navratna companies are in India?

The top Navratna PSUs that fall under the list of Navratna companies are as follows:

1. Bharat Electronics Limited (BEL)
2. Container Corporation of India Limited
3. Engineers India Limited (EIL)
4. Hindustan Aeronautics Limited (HAL)
5. Mahanagar Telephone Nigam Limited (MTNL)
6. National Aluminium Company Limited (NALCO)
7. National Buildings Construction Corporation Limited (NBCC)
8. National Mineral Development Corporation (NMDC)
9. Neyveli Lignite Corporation Limited (NLC Limited)
10. Rashtriya Ispat Nigam Limited (VIZAG STEEL)
11. Rural Electrification Corporation Limited (REC LTD)
12. Shipping Corporation of India Limited (SCI Limited)
13. Oil India Limited (OIL)

However, in the era of competitiveness, the question arises about the current jobs in Navratna companies, Navratna company criteria, and Navratna company’s recruitment and pay scale.

You can find the complete details about some of the popular Navratna companies‘ eligibility, recruitment process, and pay scale below.

Bharat Electronics Limited (BEL) BEL is one of the best firms in the list of Navratna companies created to cater to the needs of advanced electronic equipment in the Indian Defense Services. Though this is its focus, the company has marked its presence in the civilian market, too. In addition, one of the best Navratna companies exports some of its products to other countries as well. ELIGIBILITY The eligible disciplines for BEL are Electronics and Telecommunications Engineering, Mechanical Engineering, Electrical Engineering, Computer Science Engineering, Civil Engineering, and Chemical Engineering. SELECTION PROCESS Candidates have to go through a three-stage selection process to receive selection at this top government firm. Written Exam Technical interview HR interview PAYSCALE AND PERKS: The engineers will be appointed in the company as Probationary Engineer in E-1 grade with a pay scale of INR 40,000 – 1,40,000 and a 3% increment in basic pay annually. Apart from basic pay, employees will also receive Dearness Allowance (DA), House Rent Allowance, and other benefits such as Performance Related Pay, Provident Fund, Medical benefits, etc. Read More >>

OIL INDIA LIMITED (OIL) Oil India Limited is involved in the business of exploration, development, and production of crude oil and natural gas. It is also engaged in the transportation of crude oil and the production of LPG. OIL is also involved in providing various E&P-related services. Eligibility The candidates who have completed a full-time Bachelor’s Degree in Mechanical Engineering, a full-time post-graduation degree in Geology, or a full-time post-graduation degree in Geophysics are eligible to apply for similar roles. Selection Process The students must appear for the GATE Exam and secure a good GATE score, as the score will be the determining factor in shortlisting candidates for the next phase of the selection process, i.e., personal interviews. Pay scale, Perks, and Allowances The candidates will be working as Executive Trainees and will get a pay scale of INR 60,000 per month during the training period. And after the completion of the training period, they will be working as Executive Grade B with a pay scale of INR 60,000-1,80,000/-. Besides this, they will also enjoy Dearness Allowance, Cafeteria Approach, House Rent Allowance, and other benefits, which include paid leave, medical treatment, Provident Fund, and Gratuity, among others. Read More >>

NATIONAL MINERAL DEVELOPMENT CORPORATION LIMITED (NMDC) NMDC is one of the top Navratna PSUs across the country. This firm is the largest iron ore producer in the country. It is also engaged in the exploration of copper, rock phosphate, limestone, magnesite, diamond, tin, tungsten, graphite, and others. Eligibility The candidate must have completed B. Tech in the disciplines of Electrical Engineering, Electronics and Telecommunication Engineering, Computer Science Engineering and Information Technology, or Mechanical Engineering. Selection Process The candidates will have to go through a written exam. In the next steps of recruitment, he/she will have to undergo group discussion and personal interview rounds. Pay scale, Perks, and Allowances The candidates will get a pay scale ranging from INR 50,000 – 1,60,000/- Other than the basic pay, the candidates will also get to enjoy Dearness Allowance, House Rent Allowance, and other benefits like Performance Related Pay, Provident Fund, and Gratuity among others. Read More >>

NATIONAL BUILDINGS CONSTRUCTION CORPORATION LIMITED Also known as NBCC, this firm is operated in mainly three areas (i) Project Management Consultancy (PMC) (ii) Real Estate Development (iii) EPC Contracting. Apart from its core business, it also undertakes projects of re-development of government properties, roads, hospitals and medical colleges, institutions, offices, airports, bridges, industrial, and environmental structures. Eligibility Individuals who have completed B. Tech in civil engineering are eligible to apply for this job.  Selection Process The candidates should appear for the GATE exam to be shortlisted for the personal interview. Pay scale, Perks, and Allowances The candidates will get a pay scale ranging from INR 50,000 – INR 1,60,000/- Other than the basic pay, the candidates will also get to enjoy Dearness Allowance, House Rent Allowance, and other benefits like Performance Related Pay, Provident Fund, and Gratuity, among others. Read More >>

CONTAINER CORPORATION OF INDIA LIMITED CONCOR‘s main business is to provide containerized freight transportation by rail. It also undertakes the cover management of ports, air cargo complexes, and establishing cold-chain. Eligibility Students who possess a B. Tech degree in civil engineering are eligible to apply. Selection Process The company will soon release the notification of recruitment through GATE followed by group discussion and personal interviews. Payscale, Perks, and Allowances The candidates will get a pay scale of INR 50,000 – 1,60,000 with various allowances and benefits such as Dearness Allowance, House Rent Allowance, Performance Related Pay, Provident Fund, and Gratuity.

MINIRATNA PSU

The Miniratna Companies in India have increased a lot in number since their establishment. The first category of Miniratna PSU (known as Miniratna Category I) comprises significantly more companies when compared to the second category of Miniratna PSU (known as Miniratna Category II).

The names of leading companies out of the list of Miniratna companies are the following:

Company	Location
Airports Authority of India (AAI)	New Delhi
Bharat Coking Coal Limited	Dhanbad
Bharat Dynamics Limited	Hyderabad
Bharat Sanchar Nigam Limited	New Delhi
Central Coalfields Limited	Ranchi
Cochin Shipyard Limited	Cochin
Hindustan Copper Limited	Kolkata
Mangalore Refinery & Petrochemical Limited	Mangalore
NHPC Limited	Faridabad
RITES Limited	Gurgaon
BEML Limited	Bengaluru

PAYSCALE IN MINI RATNA JOBS

Miniratna companies in India mainly hire for the post of entry-level engineers through the GATE Exam. In recent years, the professionals’ pay at the Central Public Sector Enterprises CPSEs reflect significant growth as compared to the previous decade.

The basic pay scale for entry-level engineers is ranging from Rs. 15,400 to Rs. 50,500. In addition, employees receive Dearness Allowance (DA) dependent on the basic pay, House Rent Allowance (HRA), Conveyance Allowance, Travel Allowance, Medical Benefits, Leave Encashment, and Gratuity.

Unlike the status rank of Miniratna firms, these entry-level job opportunities available across the country are highly beneficial for the youth. In this way, it presents a decent career for GATE Aspirants. The engineering students preparing for the GATE Exam for PSU jobs should keep an eye on it.

 

PUBLIC SECTOR Jobs in INDIA AND its PAY SCALE

The public sector in India, initiated by the Government of India (GoI), has always been number one on the list of career choices for an Indian family. The advantages presented by these jobs in the era of the corporate sector attract youth. The number of engineers appearing every year in the GATE Exam is proof of its popularity among engineers. The demand and popularity of this exam and CPSEs are rising manifold every year. The corporate sector may provide attractive packages, but a job in one of the specified public-sector enterprises is not less attractive in any aspect. Some advantages are listed below:

1. One cannot ignore the level of job satisfaction linked with the CPSEs or PSEs. This is the lifetime employment security for the employee in a highly competitive environment.
2. The process and facilities linked with public sector jobs are not as difficult in the employment sector associated with private firms.
3. In the private sector, the salary shown is calculated in terms of CTC and not a take-home salary. On the other hand, government employees receive a decent amount in the basic salary with several perks, and allowances.
4. Government employees working with one of the Navratna PSUs and Miniratna PSUs receive loans from government and private banks much more easily as compared to that of private firms.
5. Employees working in the government sector have much more flexible options while taking paid leaves.
6. They enjoy numerous benefits other than a secure and appreciating salary like house rent allowance, earned leaves, pension scheme, group medical insurance, easy working hours, and decent holidays.

Apart from all this, the pay commission, from time to time, allows significant salary increases as mentioned above. The women employed in Public Sector Banks receive their postings at the location where their husbands are posted (in the case of married women). The employment with the list of Navratna companies and Miniratna companies also offers similar facilities applicable in the case of an unmarried woman as per her parent’s stay. It is possible upon acceptance of the official request.

Now, let us find out the most frequently asked questions associated with Public Sector Enterprises (PSE) companies including Navratna and Miniratna Companies.

Frequently Asked Questions (FAQs)

1. What are the different types of PSUs?

Ans. Public Sector Undertaking (PSU) companies include Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), and State Level Public Enterprises (SLPEs).

 

2. What is the investment facility limit for the Miniratna Category-I and Category-II companies?

Ans. According to the updated information, Miniratna Category-I companies have the facility to invest up to Rs. 500 crores, or an amount that is equal to their net worth. You need to keep in mind that the concerned official team considers the option that is less than the other. Next come the Miniratna Category-II companies. These companies receive the facility to invest up to 50 percent of their net worth, or up to a value of INR 300 crore.

 

3. Which is the best engineering stream to secure a job at Navratna PSUs and Miniratna PSUs?

Ans. The answer to this question depends on the respective eligibility criteria associated with the respective firm among the Navratna Companies in India. However, the most prominent streams include civil engineering, mechanical engineering, and electrical engineering, to name a few.

 

4. What is the highest salary at PSU?

Ans. As per the latest information, the highest package that a professional has crossed at Public Sector Undertaking is 30 Lakhs.

 

5. Which engineering stream has the number of vacancies for government job?

Ans. The mechanical engineering stream has the largest number of vacancies in government jobs.

Thus, if you are planning to secure a government job at one of the top PSUs, you must keep yourself equipped with the required knowledge linked to the respective subjects. Therefore, you must put in the right amount of effort to understand your dream job structure for a promising career ahead.

Hope you found this blog post informative and useful for your PSU interview and recruitment preparation.

All the best for your upcoming competitive exam preparation!

 

 

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