In the previous article, ” What is PSU? All you need to know about PSUs “. We have discussed what is PSU companies and their types.
As you know, PSUs are classified into three types or The Government of India categorizes Central Public Sector Enterprises (CPSEs) into three types.
So in this article, we are going to discuss Navrtna Company.
This categorization is predicated on factors like turnover, net worth, and net income on an annual basis and therefore the presence of the corporate within the stock market as per the Securities and Exchange Board of India (SEBI) rules.
What is a Navratna Company?
Navrtna scheme was introduced in the year 1997 by the Indian government. Initially awarded to nine PSUs as Navratna status. Actually, the original mean of Navartna is a talisman composed of nine precious gems.
But currently, there are 16 Central Public Sector Enterprises (CPSEs) having the Navratna status.
Eligibility Criteria for Navratna status for the companies.
To Become the Navratna Company or comes under the Navratna PSU Status, should fulfill many conditions of Central Public Sector Enterprises (CPSEs). So following criteria are eligible to be considered for Navratna status:
- The company should be under the Miniratna Category – 1 status.
- The Copmany should have four independent directors on its board of directors.
- The Company should have score 60 (out of 100), based many parameters which include , Net worth, Net profittotal manpower cost, cost of services, total cost of production, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc.
- Benefits for Investment: – The Compnay shoud be 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 Companies or How many navratna companies are in India?
Read more: What is a Maharatna Company?
In India, there are 16 Navratna CPSEs as following:-
- Bharat Electronics Limited (BEL)
- Container Corporation of India Limited (CONCOR)
- Hindustan Petroleum Corporation Limited (HPCL)
- Mahanagar Telephone Nigam Limited (MTNL)
- National Aluminium Company Limited(NALCO)
- Engineers India Limited (EIL)
- Hindustan Aeronautics Limited (HAL)
- National Buildings Construction Corporation Limited (NBCC)
- NMDC Limited.
- Rural Electrification Corporation Limited (REC)
- Power Finance Corporation Limited (PFC)
- Power Grid Corporation of India Limited
- Rashtriya Ispat Nigam Limited (RINL)
- Shipping Corporation of India Limited (SCI)
- Neyveli Lignite Corporation Limited
- Oil India Limited (OIL)
Read more: What is PSU? All you need to know about PSU?