What are the Navratna and Miniratna companies in India?

Government jobs have been a highly discussed and in-demand job trend that is evolving significantly over the past few decades. The immense craze of central government jobs can be seen clearly, and this can be seen in how candidates give their best to qualify for the competitive exams that are conducted. For obvious reasons, CPSEs (Central Public Sector Enterprises) are popular among the youth. In the case of Navratna or Miniratna companies, job seekers, especially engineering graduates, are all ears to grab crucial information about recruitment in these companies.

The blog will uncover Navratna and Miniratna companies in India, which are among categories of Public Sector Enterprises.

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, which are 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 three categories: Maharatna, Navratna, and Miniratna. These companies hold the right to get upgraded to high ranked PSU status.

You can find the eligibility criteria below that the Indian government 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 (₹) 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 ₹ 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 ₹ 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 ₹ 5,000 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 ₹ 1,000 crore. Moreover, a Navratna can upgrade into a Maharatna after it has gained an annual profit of ₹ 5,000 crores in the last 3 years with a net worth of ₹ 15,000 crores. The turnover of ₹ 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 Ltd
2. Container Corporation of India
3. Engineers India Ltd
4. Hindustan Aeronautics Limited
5. Mahanagar Telephone Nigam Limited
6. National Aluminium Company Limited
7. National Buildings Construction Corporation
8. Neyveli Lignite Corporation
9. National Mineral Development Corporation
10. Rashtriya Ispat Nigam
11. Shipping Corporation of India
12. Rail Vikas Nigam Limited
13. ONGC Videsh Ltd
14. Rashtriya Chemicals & Fertilizers Limited
15. Ircon International Limited
16. Central Warehousing Corporation
17. Indian Renewable Energy Development Agency Ltd
18. National Fertilizers Limited
19. Housing & Urban Development Corporation Limited
20. Mazagon Dock Shipbuilders Limited
21. Railtel Corporation of India Limited
22. Solar Energy Corporation of India (SECI) Ltd.
23. NHPC Limited
24. SJVN Limited
25. RITES

An average payscale of a Navratna PSU employee’s initial pay scale could be ₹ 60,000/- and go up to ₹ 1,80,000/-. Navratna PSU offers various job roles across different sectors. Some common jobs include positions for

• Engineers
• Managers
• Finance
• Human Resource Executive
• Research and Development Specialists

The recruitment process usually involves:

• Written examinations (for technical roles).
• Group discussions and personal interviews.
• Some companies may also conduct campus placements.

The benefits an employee can access at Navratna PSUs:

• Competitive salaries with allowances (HRA, DA).
• Job security and stability.
• Opportunities for career growth and skill development.
• Various employee benefits, like medical insurance and retirement plans.

How many Miniratna companies are in India?

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:

Category I: Miniratna Companies

1. Airports Authority of India
2. Antrix Corporation Limited
3. Balmer Lawrie & Co. Limited
4. Bharat Coking Coal Limited
5. Bharat Dynamics Limited
6. BEML Limited
7. Bharat Sanchar Nigam Limited
8. Braithwaite & Company Limited
9. Bridge & Roof Company (India) Limited
10. Central Coalfields Limited
11. Central Electronics Limited
12. Central Mine Planning & Design Institute Limited
13. Chennai Petroleum Corporation Limited
14. Cochin Shipyard Limited
15. Cotton Corporation of India Ltd.
16. EDCIL (India) Limited
17. Garden Reach Shipbuilders & Engineers Limited
18. Grid Controller of India Limited (GRID-INDIA)
19. Goa Shipyard Limited
20. Hindustan Copper Limited
21. Hindustan Steelworks Construction Limited
22. HLL Lifecare Limited
23. Hindustan Paper Corporation Limited
24. HSCC (India) Limited
25. India Tourism Development Corporation Limited
26. Indian Rare Earths Limited
27. Indian Railway Catering & Tourism Corporation Limited
28. Indian Railway Finance Corporation Limited
29. India Trade Promotion Organization
30. KIOCL Limited
31. Mahanadi Coalfields Limited
32. MOIL Limited
33. Mangalore Refinery & Petrochemical Limited
34. Mineral Exploration Corporation Limited
35. Mishra Dhatu Nigam Limited
36. MMTC Limited
37. MSTC Limited
38. National Projects Construction Corporation Limited
39. National Small Industries Corporation Limited
40. National Seeds Corporation
41. Northern Coalfields Limited
42. North Eastern Electric Power Corporation Limited
43. Numaligarh Refinery Limited
44. Pawan Hans Helicopters Limited
45. Projects & Development India Limited
46. Security Printing and Minting Corporation of India Limited
47. South Eastern Coalfields Limited
48. Telecommunications Consultants India Limited
49. THDC India Limited
50. Western Coalfields Limited
51. WAPCOS Limited

Category II: Miniratna Companies

1. Artificial Limbs Manufacturing Corporation of India
2. Bharat Pumps & Compressors Limited
3. Broadcast Engineering Consultants India Limited
4. Engineering Projects (India) Limited
5. FCI Aravali Gypsum & Minerals India Limited
6. Ferro Scrap Nigam Limited
7. HMT (International) Limited
8. Indian Medicines & Pharmaceuticals Corporation Limited
9. MECON Limited
10. National Film Development Corporation Limited
11. Rajasthan Electronics & Instruments Limited

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) reflects significant growth as compared to the previous decade.

The initial basic pay of a Miniratna PSU employee can be ₹ 25,000/- and exceed to ₹ 1,40,000/-. The companies usually recruit for various sectors, including positions such as:

• Engineers, in disciplines such as mechanical, electrical, civil, and electronics
• Management Trainees
• Technicians and support staff
• Finance
• HR professionals

Recruitment Process involves:

• The recruitment process usually involves:
• Written examinations (often through GATE for engineering roles).
• Group discussions and personal interviews.
• Some companies may also conduct campus placements.

The benefits an employee can access at Miniratna PSUs:

• Employees in Miniratna companies often enjoy:
• Competitive salaries with allowances (HRA, DA).
• Job security and stability.
• Opportunities for career growth and skill development.
• Various employee benefits, like medical insurance and retirement plans.

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 a house rent allowance, earned leaves, a 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 ₹ 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 ₹ 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. The highest salary at PSU can vary depending on the roles and responsibilities, job location, promotions and PSU itself. Yet the highest salary at PSUs can range between 15-50 lakhs per annum.

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

Ans. Civil engineering, mechanical engineering, electrical engineering and computer science are considered to have a high number of vacancies for 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!

 

Dear Aspirants,

While preparing for competitive engineering exams such as GATE, ESE, SES, and various PSU exams, the MADE EASY YouTube channel offers well-researched content to boost your exam preparation. Subscribe to the YouTube channel for latest job notifications, strategic tips and tricks for preparation, proper knowledge on the key concepts, and current affairs.

So, hurry up, subscribe to the MADE EASY: ESE, GATE, and PSUs YouTube channel now, and never miss an update on new videos.