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.

Financial autonomy:

  • Maharatna
  • Navratna
  • 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:

  1. Bharat Heavy Electricals Limited
  2. Coal India Limited
  3. GAIL (India) Limited
  4. Indian Oil Corporation Limited
  5. NTPC Limited
  6. Oil & Natural Gas Corporation Limited
  7. 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:

  1. Bharat Electronics Limited
  2. Bharat Petroleum Corporation Limited
  3. Container Corporation of India Limited
  4. Engineers India Limited
  5. Hindustan Aeronautics Limited
  6. Hindustan Petroleum Corporation Limited
  7. Mahanagar Telephone Nigam Limited
  8. National Aluminium Company Limited
  9. National Buildings Construction Corporation Limited
  10. NMDC Limited
  11. Neyveli Lignite Corporation Limited
  12. Oil India Limited
  13. Power Finance Corporation Limited
  14. Power Grid Corporation of India Limited
  15. Rashtriya Ispat Nigam Limited
  16. Rural Electrification Corporation Limited
  17. Shipping Corporation of India Limited

Industrial Policy 1991

(A) Objectives

  • 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.