Question

Which of the 2 companies were given Maharatna status recently(October 2019).
1. HPCL and BPCL
2. HPCL and NTPC
3. BPCL and ONGC
4. HPCL and PGCIL

Answer 1

Correct Answer - Option 4 : HPCL and PGCIL

The correct answer is HPCL and PGCIL.

• There are many Central Public Sector Enterprises (CPSE) which are functioning under the Government of India and the Status of Maharatna, Navaratna and Miniratna is given to the Central Public Sector Companies (CPSE) in India to categorize all those CPSEs.
• The Department of Public Enterprises under the Ministry of Heavy Industries & Public Enterprises is the nodal department for all the Central Public Sector Enterprises (CPSEs).
• It makes policies and guidelines for the performance evaluation and improvement of the PSUs/ CPSEs.
• The categorization depends upon various factors such as turnover, Net worth, Net profit on a yearly basis, and the company’s presence in the stock Exchange as per the SEBI’s rules.

• Central Public Sector Enterprises (CPSE) are divided into the following three categories : 
  • Maharatna started in 2009
  • Navratna started in 1997
  • Miniratna (Category 1 and Category 2) introduced in 2002.
• Recently Government of India has accorded ‘Maharatna’ status to public sector undertakings (PSU’s) Hindustan Petroleum Corporation Limited (HPCL) and Power Grid Corporation.
• Eligibility Criteria for Maharatna :
  • That PSU should have Navratna status.
  • Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
  • The average annual turnover of more than 25,000 crores, during the last 3 years.
  • The average annual net worth of more than 15,000 crores, during the last 3 years.
  • The average annual net profit after tax of more than 5,000 crores, during the last 3 years.
  • Should have a significant global presence/international operations.
• As of January 2020 , there are 10 Maharatnas, 14 Navratnas and 73 Miniratnas.