(a) the criteria adopted to declare a Public Sector Undertaking (PSU) as a Navratna Unit;
(b) the benefits that a Navratna company gets`as compared to other companies:
(c) whether the benefits accrued to Navratna companies differ based on the sales turnover;
(d) if so, the details thereof;
(e) whether conferment of the Navratna status has helped the PSUs generally in maintaining
and improving their overall performance; and
(f).ifso, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI VILASRAO DESHMUKH)
(a) to (f): A statement is laid on the Table of the House.
Statement referred to in reply to Lok Sabha Starred Question No. 88 for 9.7.2009
regarding Navratna PSUs asked by Shri L. Raja Gopal, M.P.
(a): The Government initiated the Navratna and Miniratna schemes in 1997 in order to identify public sector companies having
comparative advantages, and to make them more efficient and competitive by granting them operational and functional autonomy.
As of now, the Central Public Sector Enterprises (CPSEs) fulfilling the following criteria are eligible to be considered for
grant of Navratna status:
(i) Having Schedule `A` and Miniratna Category-1 status
(ii) Having at least three `Excellent` or `Very Good` Memorandum of Understanding (MoU) ratings during the last five years
(iii) Having a composite score of 60 or above out of 100 marks based on its performance
during the last 3 years on the following six identified efficiency parameters:
Performance Maximum Marks Parameters
Net Profit to 25 Net Worth
Manpower Cost to 15 Cost of Production or services
Gross Margin to 15 Capital Employed
Gross Profit 15 to Turnover
Earnings per 10 Share
Inter-Sectoral 20 comparison based on Net Profit to Net Worth
Total 100
Year 2005-06 2006-07 2007-08
Criteria
Turnover 4,88,259 5,92,554 6,65,199 Net worth 1,86,896 2,14,008 2,45,703 Net Profit 34.446 45,069 47,379