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Criteria for Navratna Status of PSUs in India

The Central Public Sector Enterprises (CPSEs) fulfilling the following criteria are eligible to be considered for grant of Navaratna status:

Having Schedule ‘A’ and Miniratna Category-1 status.

Having atleast three ‘Excellent’ or ‘Very Good’ Memorandum of Understanding (MoU) ratings during the last five years.

Having a composite score of 60 or above out of 100 marks based on its performance during the last three years on the following six identified efficiency parameters:

Performance Parameters

Maximum Marks

Net Profit to Net Worth

25

Manpower cost to cost of production or services

15

Gross margin as capital employed

15

Gross profit as Turnover

15

Earnings per Share

10

Inter-Sectoral comparison based on Net profit to net worth

20

Total

100

 

            As compared to other CPSEs, the Boards of Navaratna CPSEs have been delegated enhanced powers in the areas of 

(i) capital expenditure;

(ii) equity investment in  joint ventures/subsidiaries in India or abroad, 

 (iii) human resources  development

(iv) orgnaisational restructuring and (v) raising of  debt from the domestic capital markets and borrowings from international markets.

            The grant of Navratna status to CPSEs is not directly linked to their turnover.  It depends on the criteria detailed above. 

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1 Comments on Criteria for Navratna Status of PSUs in India

rahulsharmamits@gmail.com

29/08/2011 at 4:56 pm

i m from NHPC LTD, can u explain on what parameter it lacks for getting navratna status

Reply

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