Industries: Public Sector Enterprises, Navratnas and Maharatnas
⇒ Public Sector Enterprises (PSE) is a government owned corporation owned by Union Government of India, or one of the many state or territorial governments, or both.
⇒ They are under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises.
⇒ There are currently 254 PSU companies in India.
- Miniratna CPSEs (itself divided into Category I & Category II)
⇒ As on 26 October, 2014 there are 7 Maharatna, 17 Navratna and 72 Miniratna CPSE’s.
Criteria for giving Maharatna Status:
⇒ Company already holds Navratna status.
⇒ It is listed on the Indian stock exchange fulfilling the minimum prescribed public shareholding according to the SEBI regulations.
7 Maharatna CPSEs, namely:
- Bharat Heavy Electricals Limited
- Coal India Limited
- GAIL (India) Limited
- Indian Oil Corporation Limited
- NTPC Limited
- Oil & Natural Gas Corporation Limited
- Steel Authority of India Limited
Criteria for giving Navratna Status
⇒ Company must have “Miniratna Category – I” status along with a Schedule ‘A’ listing.
⇒ It should have at least 3 ‘Excellent’ or ‘Very Good’ Memorandum of Under-standing (MoU) during the last five years.
There are 17 Navratna CPSEs in the country, these are:
- Bharat Electronics Limited
- Bharat Petroleum Corporation Limited
- Container Corporation of India Limited
- Engineers India Limited
- Hindustan Aeronautics Limited
- Hindustan Petroleum Corporation Limited
- Mahanagar Telephone Nigam Limited
- National Aluminium Company Limited
- National Buildings Construction Corporation Limited
- NMDC Limited
- Neyveli Lignite Corporation Limited
- Oil India Limited
- Power Finance Corporation Limited
- Power Grid Corporation of India Limited
- Rashtriya Ispat Nigam Limited
- Rural Electrification Corporation Limited
- Shipping Corporation of India Limited
Industrial Policy 1991
- to maintain a sustained growth in productivity.
- to enhance gainful employment.
- to achieve optimum utilisation of human resources.
- to attain international competitiveness.
- to transform India into a major partner and players in the global arena.
(B) Main Focus on
- deregulating Indian industry.
- allowing the industry freedom and flexibility in responding to market forces, and
- providing a policy regime which facilitates and fosters growth of Indian industry.
(C) Policy Measures
- Liberalisation of Industrial Licensing Policy.
- Introduction of Industrial Entrepreneur’s Memorandum (i.e. no industrial approval is required for industries not requiring compulsory licensing).
- Liberalisation of Locational Policy.
- Liberalised policy for Small Scale Sectors.
- Non-Resident Indians Scheme (NRIs are allowed to invest upto 100% equity on non-repatriation basis in all activities except for a small negative list).
- Electronic Hardware Technology Park (EHTP), Software Technology Park (STP) Scheme for building up strong electronic industry to enhance exports.
- Liberalised policy for Foreign Direct Investment (FDI).
- Abolition of the MRTP limit.
- FERA was replaced by highly liberal FEMA.