Miniratna Companies in India, Category I & II, List, Eligibility

Miniratna Companies in India are a key tier of Central Public Sector Enterprises (CPSEs) that have demonstrated consistent profitability and financial stability. Created to give capable public firms more operational freedom, Miniratnas (Category I and II) enjoy defined financial autonomy so they can make capital investments and manage projects without repeated central approvals. These companies support regional economies, provide employment, and act as testing grounds for managerial autonomy before firms move up to Navratna or Maharatna status. Understanding Miniratna Companies in India explains how the state balances control with enterprise-level flexibility.

Miniratna Companies in India

Miniratna Companies in India are profit-making CPSEs split into Category I and II. Category I firms can incur capital expenditure up to ₹500 crore (or up to their net worth) while Category II firms have a lower investment ceiling (up to ₹300 crore or up to 50% of net worth). The status rewards sustained profits, positive net worth, and financial independence, and is granted by the Department of Public Enterprises (DPE).

Also Read: Maharatna Companies in India

Miniratna Companies in India Need

The Miniratna scheme was introduced to grant capable PSUs graded autonomy and encourage improved performance and faster decision-making.

• After reforms of the 1990s and the need to make PSUs competitive, the government created graded autonomy for well-performing units.
• Miniratna status recognizes consistent profit-making PSUs and allows them operational leeway without frequent central clearances.
• It creates a growth pathway: from Miniratna → Navratna → Maharatna, aligning performance incentives with greater financial powers.
• The scheme also reduces administrative bottlenecks, enabling faster project execution and local decision-making.

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Miniratna Companies in India Historical Background

Miniratna status was created in 1997 to give financially solid PSUs autonomy and stronger financial powers. 

• In October 1997, the Department of Public Enterprises (DPE) issued an order granting financial and operational autonomy to profit-making PSUs via the Miniratna scheme. 
• The original DPE OM (Office Memorandum) defined two Miniratna categories (I & II), based on profitability and net worth criteria. 
• By 2003, Miniratna CPSEs were allowed larger delegated financial powers, enabling substantial capital expenditure without seeking explicit government approval. 
• The PSU reform aimed to make public companies more competitive and efficient, particularly in global or commercial arenas. 
• The DPE periodically reviews Miniratna performance, with guidelines updated to reflect changing economic requirements.

Miniratna Category I 

Miniratna Category I companies are CPSEs that have recorded profits for the last three consecutive years and have earned a pre-tax profit of at least ₹30 crore in one of those years, with a positive net worth. Once granted Category I status, a company can undertake capital expenditure up to ₹500 crore or up to its net worth (whichever is lower) without seeking prior government approval. This status gives medium-level autonomy aimed at supporting growth and project execution.

Miniratna Category II

Miniratna Category II companies are CPSEs that have also been profitable for three consecutive years and possess a positive net worth but fall short of the Category I financial thresholds. Category II firms are allowed to approve capital expenditure proposals up to ₹300 crore or up to 50% of their net worth (whichever is lower). The Category II tag is designed for smaller but steady PSUs to manage their operations with reasonable autonomy.

Also Read: Navratna Companies in India

Miniratna Companies in India List

As of 2025, official tallies vary slightly across sources because of recent upgrades and reclassifications, but authoritative compilations indicate roughly 74 Miniratna companies across Category I and II. Names of the Miniratna companies include:

Miniratna Category I Companies

The List of Category I Miniratna Companies in India has been tabulated below based on the recent addition as of 2025, comprising total 62 companies:

Miniratna Category II Companies

The List of Category II Miniratna Companies in India has been tabulated below based on the recent addition as of 2025, comprising total 12 companies:

Miniratna Companies in India Eligibility Criteria

Eligibility to be designated a Miniratna in India rests on sustained profitability, positive net worth and clean financial records.

• Category I: Profitability for three consecutive years; pre-tax profit of ≥ ₹30 crore in at least one of those years; positive net worth; no defaults on government loans.
• Category II: Profitability for three consecutive years and positive net worth; fewer financial thresholds than Category I but must show independent viability.
• Other conditions: CPSE must not depend on government budgetary support for past three years and should have a satisfactory track record on statutory compliances.

Miniratna Companies in India Benefits

Miniratna status grants financial powers and faster decision-making that help companies invest, undertake projects, and form joint ventures.

• Category I benefits: Can approve capital expenditure up to ₹500 crore or up to their net worth; faster project sanction; greater ability to form joint ventures and subsidiaries.
• Category II benefits: Can approve capital expenditure up to ₹300 crore or up to 50% of net worth; flexibility in operational expenditure; improved procurement autonomy.
• Common gains: Reduced administrative delay, motivation for managers, and capacity to respond to market opportunities quickly, improving competitiveness.

Miniratna Companies in India Impact

Miniratna firms strengthen regional industries, deliver services efficiently, and act as feeders to higher ‘Ratna’ categories.

• Category I impact: Typically lead investments in region-specific infrastructure projects, expand manufacturing capability and contribute significant revenues to exchequer.
• Category II impact: Support local economies, maintain service delivery (like ports, airports, utilities), and stabilise employment in specialized sectors.
• Broader impact: Collectively, Miniratna companies raise PSU efficiency, reduce procedural bottlenecks and help the government achieve social and economic objectives.

Miniratna Companies in India Significance

Miniratnas are significant because they combine public ownership with managerial freedom to drive growth, accountability and market responsiveness.

• Category I significance: Trusted with larger investments, they test governance reforms and are candidates for future Navratna upgrades.
• Category II significance: Provide an incubation stage for smaller PSUs to build financial strength and governance maturity.
• Systemic significance: They reduce the need for central approvals, making PSUs nimbler while retaining public accountability.

Miniratna Companies in India Contributions

Miniratnas contribute to national revenue, regional employment, and capital formation through profits, taxes, and reinvestment.

• Miniratna firms form part of the larger CPSE revenue pool; CPSUs together reported large revenues in recent years (trillions INR collectively).
• Miniratna profits are used for capital expenditure, dividends to government, and workforce development.

Miniratna Companies in India Recent Developments

Policy reviews in 2024-25 propose revising Ratna criteria and adding new Ratna categories for next-gen CPSEs.

• The government is revising CPSE classification norms; a committee led by senior officials is exploring new evaluation parameters including corporate governance, capital expenditure, succession planning and sustainability to realign Ratna status with Vision 2047 ambitions.
• Recent PIB releases show fresh grants of Miniratna status (e.g., Munitions India Ltd, Armoured Vehicles Nigam Ltd, India Optel Ltd granted Miniratna in May 2025), reflecting dynamic recognition of performance across sectors.
• These changes aim to sharpen incentives, reward governance, and produce globally competitive CPSEs.

Miniratna Companies in India Challenges

Miniratna firms face governance gaps, limited access to capital markets, outdated assets, and capacity constraints needing policy attention.

1. Limited scale compared with Navratna/Maharatna restricts strategic investments.
2. Legacy systems and aging plant & machinery reduce competitiveness.
3. Bureaucratic hurdles still persist despite autonomy limits.
4. Difficulty in attracting professional private-sector managerial talent.
5. Access to low-cost long-term capital remains constrained.
6. Need for stronger corporate governance and succession planning.
7. Vulnerability to market shocks and sectoral downturns.
8. Limited R&D and innovation budgets.
9. Overlap of commercial and social objectives can dilute focus.
10. Slow pace in converting profitable Miniratnas to Navratna despite potential.

Way Forward:

1. Revise evaluation metrics to reward sustainability, capex and governance.
2. Facilitate blended finance and long-term lending for modernization.
3. Promote strategic public-private partnerships for tech upgrades.
4. Institute leadership development and professional board practices.
5. Encourage R&D through matched funds and innovation clusters.
6. Fast-track corporatisation of strategic units with clear commercial mandates.
7. Use performance-based incentives for promotions to Navratna.
8. Strengthen market access and export promotion for Miniratnas.
9. Improve transparency with public dashboards and regular audits.
10. Align Miniratna strategy with national priorities like energy transition and Make-in-India.

Miniratna Companies in India UPSC 

Miniratna Companies in India occupy an important middle ground in India’s public enterprise architecture. By granting calibrated financial autonomy, the Miniratna scheme empowers profitable, smaller CPSEs to invest, innovate and respond quickly to market opportunities while retaining public ownership and social obligations. Recent rounds of grants and policy reviews show the government’s intent to make the Ratna framework fit modern priorities, governance, sustainability and global competitiveness. With focused reforms on finance, governance and capacity building, Miniratna Companies in India can become reliable engines of regional development and stepping stones to larger statuses like Navratna and Maharatna.