Maharatna companies are a type of public sector enterprise (PSE) in India that have been granted special status by the government. They are considered to be among the most important and successful PSEs in the country, and play a vital role in the Indian economy.
What is a Maharatna company?
A Maharatna company is a PSE that has been granted the highest level of autonomy by the government. This means that they have the freedom to make their own investment decisions, enter into joint ventures, and set up subsidiaries. Maharatna companies are also allowed to invest up to 15% of their net worth in a single project.
Future of Maharatna companies
The future of Maharatna companies looks bright. The government has a plan to privatize some of the PSEs, but Maharatna companies are likely to be spared. This is because they are considered to be too important to the Indian economy. Instead, the government is likely to focus on further empowering Maharatna companies so that they can play an even greater role in the country’s economic development.
Role of Maharatna companies in the Indian economy
Maharatna companies play a vital role in the Indian economy. They are responsible for providing essential goods and services, such as power, oil, and steel. They also play a major role in job creation and economic growth.
In 2022, Maharatna companies contributed 12% of India’s GDP and employed over 2 million people. They also invested over Rs. 1 trillion in new projects.
Maharatna companies are expected to play an even greater role in the Indian economy in the future. The government is committed to further empowering these companies so that they can contribute even more to the country’s economic development.
Criteria for a company to be designated as a Maharatna company
In order to be designated as a Maharatna company, a PSE must meet the following criteria:
- It must have been in operation for at least 10 years.
- It must have a net worth of at least Rs. 25,000 crore.
- It must have a three-year average annual turnover of at least Rs. 20,000 crore.
- It must have a track record of profitability.
- It must have a strong management team.
Benefits of being a Maharatna company
There are several benefits to being a Maharatna company. These include:
- Greater autonomy in decision-making.
- The ability to enter into joint ventures and set up subsidiaries.
- The ability to invest up to 15% of net worth in a single project.
- Access to government funding and support.
- Increased brand recognition and prestige.
List of Maharatna companies in India
As of 2023, there are 15 Maharatna companies in India. These are:
- Bharat Heavy Electricals Limited (BHEL)
- Coal India Limited (CIL)
- GAIL (India) Limited
- Hindustan Aeronautics Limited (HAL)
- Indian Oil Corporation Limited (IOCL)
- National Aluminium Company Limited (NALCO)
- National Fertilizers Limited (NFL)
- Oil and Natural Gas Corporation Limited (ONGC)
- Power Grid Corporation of India Limited (PGCIL)
- Rural Electrification Corporation Limited (REC)
- SAIL (Steel Authority of India Limited)
- Shipping Corporation of India Limited (SCI)
- State Bank of India (SBI)
- Steel Authority of India Limited (SAIL)
Conclusion
Maharatna companies are a vital part of the Indian economy. They are responsible for providing essential goods and services, creating jobs, and driving economic growth. The government is committed to further empowering these companies so that they can play an even greater role in the country’s economic development.