List of Miniratna Companies in India

May 23, 2024 Harshvardhan Mishra

India’s Public Sector Undertakings (PSUs) are categorized into different levels based on their financial performance, autonomy, and operational efficiency. Among these categories, Miniratna companies hold a significant position due to their notable performance and potential for growth. This article provides an overview of Miniratna companies in India, their eligibility criteria, and the benefits they enjoy.

What is a Miniratna Company?

Miniratna companies are a group of public sector enterprises in India that have been granted enhanced financial and operational autonomy by the Government of India. The status of Miniratna is awarded to PSUs that demonstrate consistent profitability and strong financial performance. This classification aims to encourage these companies to achieve higher levels of performance and competitiveness both domestically and internationally.

Miniratna companies are further divided into two categories:

Miniratna Category-I: These companies can incur capital expenditure on new projects, modernization, purchase of equipment, etc., without government approval up to ₹500 crore or an amount equal to their net worth, whichever is lower.
Miniratna Category-II: These companies can incur capital expenditure on new projects, modernization, purchase of equipment, etc., without government approval up to ₹300 crore or up to 50% of their net worth, whichever is lower.

Eligibility Criteria to Become a Miniratna Company

To qualify for Miniratna status, a public sector enterprise must meet specific criteria set by the Government of India. The eligibility requirements for both categories are as follows:

Miniratna Category-I:

The company should have made a profit for three consecutive years.
It must have a positive net worth.
The company should not have defaulted in the repayment of loans or interest payments to the government.
The company should have a clear record of compliance with statutory requirements.

Miniratna Category-II:

The company should have made a profit for the last three years continuously.
It must have a positive net worth.
The company should not have defaulted in the repayment of loans or interest payments to the government.

Benefits of Miniratna Companies in India

Miniratna companies enjoy several benefits that enhance their operational capabilities and allow them to undertake more significant projects independently. Some of the key benefits include:

Financial Autonomy:

Miniratna companies can make substantial investments in new projects, modernization, and equipment purchase without requiring prior government approval. This financial independence allows for quicker decision-making and implementation of strategies.

Enhanced Decision-Making Powers:

These companies have the authority to form joint ventures, strategic alliances, and subsidiaries, which enables them to explore new business opportunities and expand their operations.

Increased Competitiveness:

With greater operational and financial autonomy, Miniratna companies can compete more effectively in the market, both domestically and internationally. This status encourages them to improve their performance and achieve higher standards of efficiency and productivity.

Improved Efficiency:

The autonomy granted to Miniratna companies helps streamline their decision-making processes, reduce bureaucratic delays, and enhance overall efficiency. This operational flexibility allows them to respond quickly to market changes and opportunities.

Greater Focus on Core Areas:

Miniratna status allows companies to focus more on their core business areas without being bogged down by excessive government controls. This focus leads to better utilization of resources and improved performance in their respective sectors.