New Delhi: The government is planning to revise the criteria for classification and performance assessment of Central Public Sector Enterprises (CPSEs) by introducing two additional 'ratna' categories alongside the existing Maharatna, Navratna and Miniratna statuses.
The move is aimed at developing the next generation of CPSEs in line with India's medium- to long-term economic goals, said officials.
The government is also considering new evaluation parameters such as corporate governance, succession planning and leadership development, capital expenditure and dividend payout, sustainable business practices and alignment with Vision 2047, they said.
A ten-member committee headed by cabinet secretary TV Somanathan is looking at the re-evaluation of CPSEs and is expected to submit a report ahead of the Union budget for 2026-27.
Other members of the committee include the secretary, Department of Public Enterprises (DPE), officials from the Department of Investment and Public Asset Management, secretaries of key infrastructure ministries and officials from the NITI Aayog and the Indian Institute of Corporate Affairs. The government aims to enhance accountability and performance-driven governance in state-owned firms while promoting efficiency and competitiveness among them.
"The two new ratna statuses are under discussion.... They will not be based on size or turnover but onthe strategic importance of CPSEs in sectors critical to the country's future economic goals," a senior government official told ET on condition of anonymity.
Currently, there are 14 Maharatna, 26 Navaratna and 74 Miniratna CPSEs in India.
The 'ratna' status is coveted as it allows for greater financial and operational authority to CPSE boards for capital expenditure, joint ventures and financial investments under supervision of the DPE.
The existing criteria to get the ratna status are based on parameters such as net profit to net worth ratio, cost of manpower, production and services, earnings per share, intersectoral performance and profit before interest and tax.
Miniratna companies require a consistent track record of profitability exceeding ₹30 crore for the past three consecutive years, with a positive net worth, to be eligible for consideration.
CPSEs which are Miniratna I, Schedule 'A' firms and have obtained 'excellent' or 'very good' ratings against targets set in a memorandum of understanding between the government and the company's management in three of the past five years and having a composite score of at least 60 in six specified performance indicators are eligible to be considered for the grant of Navratna status. For Maharatna, the annual turnover must exceed ₹25,000 crore with significant global presence.
Earlier this year, the government initiated a reassessment of CPSEs, scrutinising autonomy of their boards and financial health, with a special focus on creating the next generation global CPSEs.
In August, ET had reported about the government's plan to promote its next generation of public sector undertakings in areas such as critical minerals, renewables, aerospace, electronics and defence by infusing more capital to help them in expansion and technological upgradation.
The move is aimed at developing the next generation of CPSEs in line with India's medium- to long-term economic goals, said officials.
The government is also considering new evaluation parameters such as corporate governance, succession planning and leadership development, capital expenditure and dividend payout, sustainable business practices and alignment with Vision 2047, they said.
A ten-member committee headed by cabinet secretary TV Somanathan is looking at the re-evaluation of CPSEs and is expected to submit a report ahead of the Union budget for 2026-27.
Other members of the committee include the secretary, Department of Public Enterprises (DPE), officials from the Department of Investment and Public Asset Management, secretaries of key infrastructure ministries and officials from the NITI Aayog and the Indian Institute of Corporate Affairs. The government aims to enhance accountability and performance-driven governance in state-owned firms while promoting efficiency and competitiveness among them.
"The two new ratna statuses are under discussion.... They will not be based on size or turnover but onthe strategic importance of CPSEs in sectors critical to the country's future economic goals," a senior government official told ET on condition of anonymity.
Currently, there are 14 Maharatna, 26 Navaratna and 74 Miniratna CPSEs in India.
The 'ratna' status is coveted as it allows for greater financial and operational authority to CPSE boards for capital expenditure, joint ventures and financial investments under supervision of the DPE.
The existing criteria to get the ratna status are based on parameters such as net profit to net worth ratio, cost of manpower, production and services, earnings per share, intersectoral performance and profit before interest and tax.
Miniratna companies require a consistent track record of profitability exceeding ₹30 crore for the past three consecutive years, with a positive net worth, to be eligible for consideration.
CPSEs which are Miniratna I, Schedule 'A' firms and have obtained 'excellent' or 'very good' ratings against targets set in a memorandum of understanding between the government and the company's management in three of the past five years and having a composite score of at least 60 in six specified performance indicators are eligible to be considered for the grant of Navratna status. For Maharatna, the annual turnover must exceed ₹25,000 crore with significant global presence.
Earlier this year, the government initiated a reassessment of CPSEs, scrutinising autonomy of their boards and financial health, with a special focus on creating the next generation global CPSEs.
In August, ET had reported about the government's plan to promote its next generation of public sector undertakings in areas such as critical minerals, renewables, aerospace, electronics and defence by infusing more capital to help them in expansion and technological upgradation.
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