PSU - DIFFERENCE BETWEEN MINIRTNA AND MAHARTNA COMPANIES

the difference bw mahartna ,navratna and miniratna can be find out on the  basis of how much a public sector company can invest without government’s approval is determined by its status. 

(Net worth :- difference between asset and liabilities)

Maharatna company can invest upto 5000 crore or 15% of its net worth in a project.

Eligibility: Three years with an average annual net profit of over Rs. 2500 crore, OR Average annual Net worth of Rs. 10,000 crore for 3 years, OR Average annual Turnover of Rs. 20,000 crore for 3 years (against Rs 25,000 crore prescribed earlier)

Navratna company can invest upto 1000 crore.

Miniratna companies can invest upto 500 crore or an amount equal to their net worth.

Eligibility: A score of 60 (out of 100), based on six parameters which include net profit, net worth, total workforce cost, the total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest, and Taxes), capital employed, etc., AND A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

• net profit 
• total workforce cost 
• total cost of production 
• cost of services
• PBDIT (Profit Before Depreciation, Interest, and Taxes)
• capital employed

PSU in India are also categorized based on their special non-financial objectives and are registered under Section 8 of the Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).

As of 31st  May 2019, there are 8 Maharatnas, 16 Navratnas, and 75 Miniratnas. There were 339 CPSEs (excluding insurance companies) of these, 82 enterprises were yet to commence commercial operations. The remaining 257 were operating enterprises (including 179 scheduled CPSEs ).