Facts about PSUs

A state-owned enterprise in India is called a public sector undertaking. These companies are owned by the union government of India. Public sector undertakings (PSUs) in India, for long, have had troubles conducting their recruitment processes with more than 100,000 students taking the exams for less than 1000 jobs. The PSU companies fulfill all expectations of young engineers as: Handsome salary, Job security, Job satisfaction, Real time growth, Technical job and other livelihood facilities, which everyone should wish to grab this high class job for their career. PSU also give time to time opportunities to earn master and doctored degree to their valuable employees which definitely enhance their practical technical knowledge to deliver outstanding products to the common people of their country.
Various PSUs have been awarded additional financial autonomy. These companies are “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”. Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997.
In 2010, the government established the higher Maharatna category, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Two categories of “Miniratnas” afford less extensive financial autonomy.

Guidelines for awarding ratna status are as follow:

Maharatna Eligibility :

Three years with an average annual net profit of over Rs. 2500 crore (earlier was 5,000 Cr), OR Average annual Net worth of Rs. 10,000 crore for 3 years (earlier was 15,000 Cr), OR Average annual Turnover of Rs. 20,000 crore for 3 years (earlier was 25,000 Cr)

Benefits for investment

Rs. 1,000 crore – Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project

List of Maharatna PSU’s

Navratna

Eligibility :

A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., and a company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

Benefits for investment

Up to Rs. 1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding Rs. 1,000 crores).

List of Navratna PSU’s

Miniratna Category-I

Eligibility :

Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years.

Benefits for investment

Up to Rs. 500 crore or equal to their net worth, whichever is lower.

List of Miniratna PSU’s Categeory-I

Miniratna Category-II

Eligibility :

Have made profits continuously for the last three years and should have a positive net worth.

Benefits for investment

up to Rs. 300 crore or up to 50% of their net worth, whichever is lower

List of Miniratna PSU’s Categeory-I