Maharatna, Navratna, and Miniratna, Eligibility, List, Benefits, Impact

Maharatna, Navratna, and Miniratna companies are special categories created by the Government of India to give selected Public Sector Undertakings more financial and operational freedom. These categories help strong-performing PSUs take quicker decisions, invest in large projects, and compete globally without waiting for multiple government approvals. PSUs are government-owned companies with at least 51 percent government stake. Their roles include developing heavy industries, boosting exports, reducing imports, and expanding infrastructure. Over the decades, PSUs have become one of India’s major economic pillars, contributing significantly to employment, industrialization, and national growth. Understanding their classification helps explain their functioning and importance.

What are Maharatna, Navratna, and Miniratna Status?

Maharatna, Navratna, and Miniratna are classifications created to reward high-performing Central Public Sector Enterprises (CPSEs) with different levels of autonomy. Maharatna companies enjoy the highest decision-making power and investment freedom. Navratna companies receive moderate autonomy, while Miniratna firms, divided into Category I and II, get limited but important operational independence. These categories depend on financial strength, profitability, net worth, and overall performance. The system ensures that efficient PSUs can grow faster, invest more easily, and expand globally. This framework helps the government strengthen its best-performing enterprises while encouraging other PSUs to improve and reach higher categories.

Maharatna, Navratna, and Miniratna Historical Background

The history of Maharatna, Navratna, and Miniratna categories reflects India’s effort to strengthen PSUs and push them towards financial and administrative autonomy.

• After Independence, India needed rapid industrialization, leading to the creation of PSUs under the Industrial Policy Resolution of 1956.
• PSUs were established in strategic sectors: communication, irrigation, chemicals, heavy industries, and energy.
• By the 1990s, many PSUs were financially strong and required greater autonomy to compete globally.
• In 1997, the government created the Navratna category to give nine top PSUs more powers.
• Later, the Miniratna Category I and II classifications were introduced for profitable but smaller PSUs.
• In 2010, the Maharatna Category was created to give the largest PSUs even greater financial independence.

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Maharatna, Navratna, and Miniratna Definitions

The three classes of the companies can be defined as:

Maharatna

A Maharatna is the highest classification granted to the most financially strong, strategically important, and globally competitive CPSEs. These PSUs have very large investments, strong profits, and significant national importance. They are allowed to make large financial decisions without seeking government approval, enabling them to compete internationally. Maharatna companies represent India’s biggest public sector brands and play a major role in key areas such as energy, minerals, transportation, and heavy engineering.

Navratna

A Navratna is a mid-level classification awarded to strong-performing PSUs that meet specific financial and managerial criteria. To become a Navratna, a PSU must first qualify as a Miniratna and achieve a performance score of 60 out of 100 based on parameters like net worth, net profit, capital employed, manpower cost, and service cost. Navratna companies get moderate financial autonomy, enabling them to invest in projects up to a fixed limit. These companies show strong potential to grow into Maharatna status.

Miniratna

Miniratnas are profitable PSUs divided into two categories: Category I and Category II. They are financially stable but smaller than Navratna and Maharatna companies. Category I companies can invest up to ₹500 crore or their net worth, while Category II companies can invest up to ₹300 crore or 50 percent of net worth. Miniratnas are important regional and sectoral PSUs and often serve as the foundation for future Navratna-level performance.

Maharatna, Navratna, and Miniratna Eligibility Criteria

Each category has clear financial and performance-based criteria that determine whether a PSU qualifies as a Maharatna, Navratna, or Miniratna.

Maharatna Eligibility Criteria

• Average annual net profit above ₹2,500 crore for three years OR
• Average annual net worth ₹10,000 crore for three years OR
• Average annual turnover ₹20,000 crore for three years
• Must already have Navratna status
• Should have a strong global footprint and leadership in the sector

Navratna Eligibility Criteria

• Must be a Miniratna Category I
• Score of 60 out of 100 based on financial parameters
• Must have at least four independent directors
• Strong profitability track record
• Broad sectoral importance and good management systems

Miniratna Eligibility Criteria

• Category I
  • Profit-making for the last three years
  • At least ₹30 crore profit in one of the three years
  • Positive net worth
• Category II
  • Profit-making for the last three years
  • Positive net worth
  • Smaller financial strength compared to Category I

Also Read: SEBI

Maharatna, Navratna, and Miniratna Benefits

These categories provide financial autonomy and operational flexibility, allowing PSUs to make strategic decisions faster and more effectively.

Maharatna Benefits

• Can invest up to ₹5,000 crore without government approval
• Can invest up to 15 percent of net worth in a project
• Greater freedom for joint ventures and mergers
• Independent international operations
• Faster decision-making for large-scale projects

Navratna Benefits

• Can invest up to ₹1,000 crore or 15 percent of net worth
• Improved financial autonomy compared to Miniratna
• Ability to enter joint ventures
• Faster project clearances
• Greater competitiveness in domestic markets

Miniratna Benefits

• Category I
  • Can invest up to ₹500 crore or their net worth
  • More autonomy than regular PSUs
  • Flexibility in operational decisions
• Category II
  • Can invest up to ₹300 crore
  • Limited but useful decision-making freedom
  • Helps PSUs grow to Category I

Maharatna, Navratna, and Miniratna Impact

These classifications significantly impact India’s industrial growth, economic performance, and the global competitiveness of public sector enterprises.

Maharatna Impact

• Drive India’s energy, minerals, and infrastructure sectors
• Lead global expansion of Indian PSUs
• Generate high revenue and profit for the country
• Strengthen national strategic capacity

Navratna Impact

• Support mid-level industrial growth
• Enhance competitiveness of key sectors
• Strengthen domestic manufacturing and services
• Improve financial efficiency within the PSU ecosystem

Miniratna Impact

• Promote regional development
• Strengthen smaller industrial sectors
• Convert profitable PSUs into stronger enterprises
• Serve as a talent and development base for future Navratnas

Maharatna, Navratna, and Miniratna Significance

These categories help the government strengthen PSUs while promoting financial discipline, competitiveness, and strategic development.

Maharatna Significance

• Represent India’s strongest public enterprises
• Ensure leadership in globally competitive sectors
• Help India achieve economic sovereignty
• Major contributors to national infrastructure

Navratna Significance

• Bridge the gap between Miniratna and Maharatna
• Maintain industrial stability
• Promote efficient management practices
• Expand India’s sectoral capacity

Miniratna Significance

• Encourage smaller PSUs to grow
• Improve operational efficiency
• Support local economies
• Provide employment and industrial expansion

Also Read: Mutual Funds

Maharatna, Navratna, and Miniratna Financial Contributions

These PSUs collectively contribute major revenue, profits, and capital investments to India’s economy each year.

• CPSUs earned revenue above ₹24 lakh crore in 2018-19
• Top 10 profit-making PSUs earned ₹1.60 lakh crore profit in 2021-22
• ONGC alone generated ₹40,305 crore profit
• Maharatna and Navratna companies account for the largest share of national industrial investment
• Miniratnas contribute significantly to regional economies

Maharatna, Navratna, and Miniratna Recent Development

The government is revising the classification system to improve PSU performance and align with Vision 2047.

• A new proposal suggests adding two more Ratna categories.
• A 10-member committee led by Cabinet Secretary T. V. Somanathan will review performance standards.
• New criteria include corporate governance, leadership development, capital expenditure, sustainability, and dividend payout.
• The revision aims to modernize public sector enterprises for global competitiveness.
• This aligns PSU growth with India’s long-term development strategy under Vision 2047.

Maharatna, Navratna, and Miniratna List

As of 2025, India has 14 Maharatna, 26 Navratna, and 74 Miniratna companies (Category I and II combined). These companies together form the backbone of India’s industrial and economic strength.

Maharatna Companies

Maharatnas include India’s biggest companies like ONGC, NTPC, IOCL, Coal India, and Power Grid. The Maharatna consists of 14 companies as of now-

1. Oil and Natural Gas Corporation (ONGC)
2. Bharat Heavy Electricals Limited (BHEL)
3. Bharat Petroleum Corporation Limited (BPCL)
4. Coal India Limited (CIL)
5. Gas Authority of India Limited (GAIL)
6. Hindustan Petroleum Corporation Limited (HPCL)
7. Indian Oil Corporation Limited (IOCL)
8. National Thermal Power Corporation (NTPC)
9. Power Grid Corporation of India (PGCIL)
10. Power Finance Corporation Limited (PFCL)
11. Rural Electrification Corporation Limited (REC)
12. Steel Authority of India Limited (SAIL)
13. Oil India Limited (OIL)
14. Hindustan Aeronautics Limited (HAL) (since 12 October 2024)

Navratna Companies

Navratnas include leading sectoral enterprises such as BEL, Hindustan Aeronautics Limited (HAL), and Engineers India Limited. The list of 26 Navratnas are:

1. Bharat Electronics Limited (BEL)
2. Container Corporation of India (CONCOR)
3. Engineers India Limited (EIL)
4. Mahanagar Telephone Nigam Limited (MTNL)
5. National Aluminium Company (NALCO)
6. NBCC (India) Limited
7. National Mineral Development Corporation (NMDC)
8. NLC India Limited (Neyveli Lignite)
9. Rashtriya Ispat Nigam Limited (RINL)
10. Shipping Corporation of India (SCI)
11. Rail Vikas Nigam Limited (RVNL)
12. ONGC Videsh Limited
13. Rashtriya Chemicals & Fertilizers Limited (RCF)
14. Ircon International
15. RITES Limited
16. National Fertilizers Limited (NFL)
17. Housing And Urban Development Corporation Limited (HUDCO)
18. Indian Renewable Energy Development Agency (IREDA)
19. Central Warehousing Corporation (CWC)
20. Mazagon Dockyard Limited
21. RailTel Corporation of India Limited (RCIL) (since 30 August 2024)
22. SJVN Limited
23. NHPC Limited
24. Solar Energy Corporation of India (SECI)
25. Indian Railway Catering and Tourism Corporation (IRCTC)
26. Indian Railway Finance Corporation (IRFC)

Miniratna Companies

Miniratnas include both large and regionally important PSUs spread across energy, services, transport, minerals, manufacturing, and engineering sectors. The major companies under Miniratna Category has been listed below:

Miniratna Category-I

1. Airports Authority of India (AAI)
2. ONGC Videsh Limited
3. Antrix Corporation (ANTRIX)
4. Balmer Lawrie
5. Braithwaite & Co.
6. Bharat Coking Coal Limited (BCCL)
7. Bharat Dynamics Limited (BDL)
8. Bharat Earth Movers Limited (BEML)
9. Bharat Sanchar Nigam Limited (BSNL)
10. Bridge and Roof Company (India)
11. Central Electronics Limited (CEL)
12. Central Coalfields Limited (CCL)
13. Central Mine Planning & Design Institute Limited
14. Mishra Dhatu Nigam Limited (MIDHANI)
15. Chennai Petroleum Corporation (CPCL)
16. Cochin Shipyard (CSL)
17. Cotton Corporation of India Limited (CCIL)
18. EdCIL (India) Limited (EdCIL)
19. Garden Reach Shipbuilders & Engineers (GRSE)
20. Goa Shipyard (GSL), etc.

Miniratna Category-II

1. Artificial Limbs Manufacturing Corporation of India
2. Bharat Pumps & Compressors Limited
3. Broadcast Engineering Consultants India Limited
4. Engineering Projects (India) Limited
5. FCI Aravali Gypsum and Minerals (India) Limited
6. HMT International Limited
7. Indian Medicines Pharmaceutical Corporation Limited
8. Ferro Scrap Nigam Limited (FSNL)
9. MECON
10. National Film Development Corporation of India (NFDC)
11. Rajasthan Electronics and Instruments Limited

Maharatna, Navratna, and Miniratna UPSC

Maharatna, Navratna, and Miniratna classifications highlight the government’s strategy of empowering its strongest enterprises while encouraging others to grow. They ensure that PSUs remain globally competitive, financially strong, and strategically important for national development. Maharatnas drive large-scale national growth, Navratnas enhance sectoral performance, and Miniratnas strengthen regional and foundational industries. Together, they contribute significantly to revenue, employment, capital formation, and infrastructure. As India moves towards Vision 2047, strengthening these categories will help create modern, efficient, and future-ready public sector enterprises that support India’s economic progress.