Introduction:
Miniratna companies refer to a distinct category of government-owned enterprises in India. These companies are typically granted more operational freedom and financial independence as compared to other Public Sector Undertakings (PSUs). They play a crucial role in driving economic growth and contribute significantly across diverse sectors, including telecommunications, aviation, defence, and engineering.
This blog delves into what makes Miniratna companies unique, highlights some of the top Miniratna companies in India, and explores their impact on the nation's economy. Keep reading.
What are Miniratna Companies?
A Miniratna company is a public sector undertaking (PSU) recognised for its consistent financial performance and operational efficiency. The Indian government awards these companies greater autonomy and decision-making authority, allowing them to operate with higher flexibility and compete more effectively within their respective sectors.
Although Miniratna companies are owned and controlled by the Indian Government, they are granted greater autonomy in their daily operations. It enables them to make strategic decisions regarding investments, joint ventures, and other business initiatives without requiring frequent government approvals.
Types of Miniratna Companies in India
Miniratna companies in India are further categorised into two types based on their financial autonomy and performance: Miniratna Category I and Miniratna Category II.
To qualify as a Miniratna Category I, a company must have made a profit for the last three years continuously and should have a positive net worth. These companies are granted more operational freedom than other PSUs, allowing them to invest up to Rs. 500 crores or an amount equal to their net worth, whichever is lower, without seeking government approval.
Miniratna Category II companies must also have a record of profit for the last three years but are allowed to invest up to Rs. 300 crores or up to 50% of their net worth, whichever is lower, without government approval. The flexibility given to these companies enables them to operate more efficiently and respond to market dynamics swiftly.
Top Miniratna Companies in India
Do you know how many Miniratna companies are in India? As of May 2024, there are 68 Miniratna companies in India, with 57 companies under Miniratna category I and 11 companies under Miniratna category II. Below is the list of Miniratna companies in India:
Companies under Miniratna Category I
Listed below are the companies under Miniratna Category I:
Companies under Miniratna Category II
Listed below are the companies under Miniratna Category II:
To conclude
Miniratna companies in India exemplify the success of the PSUs that have leveraged operational autonomy to achieve significant growth and efficiency. As an investor, you must keep an eye on these companies to identify profit-making opportunities.
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