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Maharatna & Navratna CPSEs GK Questions & Answers
Central Public Sector Enterprises (CPSEs) in India operate under administrative grading systems established by the Department of Public Enterprises (DPE) to grant graded managerial and financial autonomy. Introduced initially in 1997 with Navratna and Miniratna classifications, the Government of India instituted the apex Maharatna status in December 2009 to empower large public sector corporations to expand into global giants. To secure Maharatna eligibility, a CPSE must hold Navratna status, maintain listing on the Indian stock exchange under Securities and Exchange Board of India public shareholding regulations, and register an average annual net profit after tax exceeding five thousand crore rupees, average annual net worth of fifteen thousand crore rupees, and average annual turnover exceeding twenty-five thousand crore rupees over three consecutive years. Maharatna boards exercise delegated powers to sanction capital expenditures and equity investments in joint ventures up to five thousand crore rupees or fifteen percent of company net worth per project without prior Cabinet approval. Navratna enterprises, evaluated on a sixty-point composite score across six performance indicators, may invest up to one thousand crore rupees independently.
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The Navratna and Miniratna classification schemes were introduced in 1997 during the Ninth Five-Year Plan to confer greater autonomy upon profit-making CPSEs.
The Maharatna category was introduced by the Union Government in December 2009 to facilitate mega-investments by premier public sector undertakings.
The Department of Public Enterprises (DPE), shifted from the Ministry of Heavy Industries to the Ministry of Finance in July 2021, governs CPSE categorizations.
To qualify for Maharatna status, a CPSE must already hold Navratna status and be listed on an Indian stock exchange with minimum prescribed public shareholding.
Maharatna financial criteria require an average annual net profit after tax of over ₹5,000 crore during the last three financial years.
A CPSE seeking Maharatna status must have an average annual net worth of at least ₹15,000 crore and average annual turnover of at least ₹25,000 crore over three years.
The board of directors of a Maharatna CPSE can sanction capital expenditure on joint ventures and subsidiaries up to ₹5,000 crore or 15% of net worth in one project.
To attain Navratna status, a CPSE must be a Miniratna Category-I enterprise and hold an 'Excellent' or 'Very Good' rating under the Memorandum of Understanding (MoU) system in three of the last five years.
Navratna qualification requires scoring at least 60 out of 100 on six composite performance parameters: net profit to net worth, manpower cost to total cost, PBDIT to capital employed, PBIT to turnover, earnings per share, and inter-sectoral performance.
The board of a Navratna CPSE can invest up to ₹1,000 crore or 15% of the company's net worth on a single project without prior government approval.
Miniratna Category-I status requires a CPSE to have made profits continuously for the last three years with a pre-tax profit of at least ₹30 crore in at least one of the three years.
Miniratna Category-II status requires a CPSE to have made continuous profits for the last three financial years and possess a positive net worth.
Miniratna Category-I boards can incur capital expenditure without government approval up to ₹500 crore or equal to net worth, whichever is lower.
Oil and Natural Gas Corporation (ONGC), National Thermal Power Corporation (NTPC), and Steel Authority of India Limited (SAIL) were among the foundational CPSEs inducted into Maharatna status in 2010.
In 2023, Oil India Limited (OIL) was elevated to become India's 13th Maharatna CPSE, while ONGC Videsh Limited (OVL) was upgraded to Navratna status.
The boards of 'Maharatna' Central Public Sector Enterprises (CPSEs) are empowered to make capital investments in a single project without prior Union Cabinet approval up to what financial ceiling?
Verified Explanation
Maharatna CPSE boards have delegated powers to make equity investments to establish financial joint ventures and wholly owned subsidiaries in India or abroad up to ₹5,000 crore or 15% of net worth in a single project.
To be eligible for the grant of 'Maharatna' status, a Central Public Sector Enterprise (CPSE) must have recorded an average annual net profit after tax during the last 3 consecutive years of at least what amount?
Verified Explanation
According to DPE criteria, a CPSE seeking Maharatna status must: 1) Have Navratna status, 2) Be listed on an Indian stock exchange, 3) Have an average annual turnover of >₹25,000 crore, 4) Average annual net worth of >₹15,000 crore, and 5) Average annual net profit after tax of >₹5,000 crore during the last 3 years.
3ID: GK-BIZ-00035
easyMaharatna PSUs & Historic Indian Conglomerates
Headquartered in Kolkata, which Maharatna CPSE is the single largest coal-producing company in the world?
Verified Explanation
Coal India Limited (CIL), incorporated in 1975 and headquartered in Kolkata, is a state-owned Maharatna company that contributes over 80% of India's total domestic coal production, making it the world's largest coal producer.
4ID: GK-BIZ-00036
easyMaharatna PSUs & Historic Indian Conglomerates
In August 2023, which upstream exploration and production company was elevated by the Ministry of Finance to become India's 13th Maharatna Central Public Sector Enterprise?
Verified Explanation
In August 2023, the Department of Public Enterprises, Ministry of Finance, upgraded Oil India Limited (OIL) from Navratna to the 13th Maharatna CPSE in India, recognizing its consistent financial performance and global energy footprint.
5ID: GK-BIZ-00040
mediumMaharatna PSUs & Historic Indian Conglomerates
Which non-banking financial CPSE under the Ministry of Power was granted 'Maharatna' status in September 2022?
Verified Explanation
REC Limited (formerly Rural Electrification Corporation), an NBFC under the Ministry of Power established in 1969, was accorded Maharatna status in September 2022, joining its parent entity PFC (which received Maharatna status in October 2021).
6ID: GK-BIZ-00043
mediumMaharatna PSUs & Historic Indian Conglomerates
According to the Department of Public Enterprises (DPE) guidelines, what is the minimum average annual turnover required during the last 3 consecutive years for a CPSE to qualify for Maharatna status?
Verified Explanation
To qualify for Maharatna status, a CPSE must: (1) possess Navratna status, (2) be listed on Indian stock exchanges with prescribed public shareholding, (3) have an average annual turnover of over ₹25,000 crore during the last 3 years, (4) average annual net worth over ₹15,000 crore, and (5) average annual net profit over ₹5,000 crore.
7ID: GK-BIZ-00048
hardMaharatna PSUs & Historic Indian Conglomerates
What is the minimum average annual Net Worth requirement over the last 3 consecutive years for a CPSE to be granted Maharatna status?
Verified Explanation
According to the eligibility criteria prescribed by the Department of Public Enterprises, a CPSE must maintain an average annual Net Worth of at least ₹15,000 crore during the preceding three consecutive financial years to qualify for Maharatna designation.
8ID: GK-BIZ-00049
hardMaharatna PSUs & Historic Indian Conglomerates
Incorporated in 1975 to accelerate thermal power development, which was the first public sector power company in India to be granted Maharatna status in 2010?
Verified Explanation
NTPC Limited, established in 1975, was among the inaugural batch of four CPSEs (along with ONGC, SAIL, and IOCL) granted the newly instituted Maharatna status by the Government of India in May 2010.
9ID: GK-BIZ-00091
easyMaharatna PSUs & Historic Indian Conglomerates
In October 2024, which premier aerospace and defense public sector undertaking was elevated by the Ministry of Finance to become India's 14th Maharatna CPSE?
Verified Explanation
In October 2024, the Ministry of Finance approved the upgradation of Hindustan Aeronautics Limited (HAL) to the 14th Maharatna Central Public Sector Enterprise (CPSE), recognizing its robust turnover of over ₹28,000 crore and sustained profitability in indigenous aerospace engineering.
10ID: GK-BIZ-00092
easyMaharatna PSUs & Historic Indian Conglomerates
In October 2021, which leading non-banking financial CPSE under the Ministry of Power was granted 'Maharatna' status, becoming India's 11th Maharatna enterprise?
Verified Explanation
Power Finance Corporation (PFC), established in 1986 as the dedicated financial backbone of India's power sector, was granted Maharatna status in October 2021, becoming the first specialized non-banking financial institution to receive this prestigious status.