Hindustan Shipyard Limited (HSL) has been conferred the Mini-Ratna Category-I status
Context:
Hindustan Shipyard Limited (HSL) has been conferred the Mini-Ratna Category-I status by the Government of India.
HSL will thus enjoy the benefits/applicable autonomy associated with Mini-Ratna Category-I status.
Criteria for the Ratna categories
Mini (Miniratna)
Miniratna Category-I: A CPSE which has made profits for the last three years continuously, pre-tax profit of at least ₹30 crore (in at least one of the three years) and has a positive net worth.
Miniratna Category-II: A CPSE which has made profit for the last three years continuously and has a positive net worth.
Additional conditions: the CPSE should not have defaulted in repayment of loans/interest to the Government; should not depend on budgetary support or Government guarantees.
Navratna
To be eligible for Navratna status a CPSE must be Miniratna Category-I & Schedule ‘A’.
It must have obtained “Excellent” or “Very Good” rating in its Memorandum of Understanding (MoU) in 3 of the last 5 years.
It must have a composite score of 60 or above (out of 100) based on six performance parameters:
Net Profit to Net Worth (weight 25)
Manpower Cost to Total Cost of Production or Cost of Services (weight 15)
PBDIT to Capital Employed (weight 15)
PBIT to Turnover (weight 15)
Earnings Per Share (weight 10)
Inter-Sectoral Performance (weight 20)
Maharatna
Criteria for Maharatna status:
The CPSE should have Navratna status.
The CPSE should be listed on Indian stock exchange with required minimum public shareholding (as per SEBI).
Average annual turnover of more than ₹25,000 crore (for last 3 years).
Average annual net worth of more than ₹15,000 crore (for last 3 years).
Average annual net profit after tax of more than ₹5,000 crore (for last 3 years).
Significant global presence / international operations.
Comparison
Category | Investment Autonomy | Prerequisites |
Maharatna | Up to ₹5,000 cr or 15% of net worth | Navratna + strong global presence + ₹25k cr turnover |
Navratna | Up to ₹1,000 cr or 15% of net worth | Miniratna-I + high performance score |
Miniratna-I | Up to ₹500 cr or equal to net worth | Profitable for 3 yrs, ₹30 cr profit (1 yr) |
Miniratna-II | Up to ₹300 cr or 50% of net worth | Profitable 3 yrs |
Recently in march 2025 Govt upgrades IRCTC and IRFC to Navratna status from Miniratna-I
Category | No. of Companies (2025) | Examples & Latest Additions |
Maharatna | 14 | ONGC, IOCL, NTPC, SAIL, GAIL, HPCL, BPCL, BHEL, CIL, PGCIL, PFCL, REC, OIL, HAL (2024) |
Navratna | 26 | BEL, CONCOR, NALCO, NMDC, RINL, NBCC, EIL, NLC India, HUDCO, RCF, RITES, IRCTC, IRFC, SECI, NHPC, SJVN, Mazagon Dock, RailTel (2024) |
Miniratna I & II | 64 (55 + 9) | AAI, BDL, BEML, BSNL, Cochin Shipyard, GRSE, Goa Shipyard, MRPL, MSTC, NSIC, TCIL, WAPCOS, HSL (2025); II → MECON, ALIMCO, BECIL etc. |
Prelims Practice MCQs
Q. What is the maximum investment limit that a Navratna PSU can make without prior government approval?
A. ₹500 crore or equal to Net Worth (whichever is less)
B. ₹1,000 crore or 15% of Net Worth (whichever is less)
C. ₹5,000 crore or 15% of Net Worth (whichever is less)
D. ₹300 crore or 50% of Net Worth (whichever is less)
✅ Answer: B. ₹1,000 crore or 15% of Net Worth
Explanation:
Maharatna: ₹5,000 crore / 15% NW
Navratna: ₹1,000 crore / 15% NW
Miniratna I: ₹500 crore / = NW
Miniratna II: ₹300 crore / 50% NW
Q. Which of the following statements are correct regarding Miniratna Category I CPSEs?
They can invest up to ₹500 crore or an amount equal to their net worth, whichever is less.
They must have made profits continuously for the last three years.
They must have a positive net worth.
Select the correct code:
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2, and 3
✅ Answer: D. 1, 2, and 3
Explanation:
All three are mandatory eligibility criteria for Miniratna Category I PSUs.
Additional: at least ₹30 crore profit in one of the last 3 years, and no loan default to the Government.