Mazagon Dock Shipbuilders Elevated to 'Navratna' Status by Government

Tags: National News

Mazagon Dock Shipbuilders Limited (MDSL), a Central Public Sector Undertaking (CPSU) under the Ministry of Defence (MoD), has been granted 'Navratna' status by the Department of Public Enterprises (DPE), under the Ministry of Finance (MoF).

An Overview of the News

• Central Electronics Limited (CEL), a PSU under the Ministry of Science and Technology (MoST), Department of Scientific and Industrial Research (DSIR), has received 'Mini RATNA (Category-1)' status from the Department of Public Enterprises.

• During the Golden Jubilee celebration of CEL at its Ghaziabad campus in Uttar Pradesh (UP), Dr. Jitendra Singh, Union Minister of State (MoS) Independent Charge (IC), MoST, announced the grant of Mini Ratna status for CEL.

About Navratna CPSE

• It is a select group of public sector enterprises in India that have been granted greater autonomy in decision making and financial management by the government.

• The term "Navratna" means "Nine Gems" in Hindi and refers to the original nine CPSEs that were granted this status in 1997.

• Navratna CPSEs are also subject to certain obligations, such as achieving certain performance targets and maintaining minimum levels of public shareholding

• Some examples of Navratna CPSEs include Bharat Electronics Limited, Hindustan Petroleum Corporation Limited and Power Grid Corporation of India Limited.

Criteria for Navratna Status:

• Must be a Miniratna-I or Schedule 'A' company.

• Should have received an 'excellent' or 'very good' rating in at least three of the last five years under the Memorandum of Understanding (MoU) system.

• Must achieve a composite score of 60 or above in six specified performance indicators.

• Should report a net profit of over Rs 5,000 crore for three consecutive years.

• Must maintain an average annual turnover of Rs 25,000 crore for three years, or an average net worth of over Rs 15,000 crore for three years.

Benefits of Navratna Status:

• Financial Autonomy: Can make investments up to ₹1,000 crore without seeking government approval.

• Investment Flexibility: Allowed to invest up to 15% of their net worth in a single project or 30% of their net worth in a fiscal year, capped at ₹1,000 crore.

• Capital Expenditure: Can spend on new items or replacements without a monetary ceiling.

• Strategic Initiatives: Permitted to enter into technology joint ventures or strategic alliances.

List of Navratna companies:

1. Bharat Electronics Limited (BEL)

2. Container Corporation of India Limited (CONCOR)

3. Engineers India Limited (EIL)

4. Hindustan Aeronautics Limited (HAL)

5. Mahanagar Telephone Nigam Limited (MTNL)

6. National Aluminium Company Limited (NALCO)

7. National Buildings Construction Corporation Limited (NBCC)

8. Neyveli Lignite Corporation Limited (NLC India)

9. National Mineral Development Corporation Limited (NMDC)

10. Rashtriya Ispat Nigam Limited (RINL)

11. Shipping Corporation of India Limited (SCI)

12. Rail Vikas Nigam Limited (RVNL)

13. ONGC Videsh Ltd (OVL)

14. Rashtriya Chemicals & Fertilizers Limited (RCF)

15. IRCON International Limited

16. RITES Limited

17. Indian Renewable Energy Development Agency Limited (IREDA)

18. National Fertilizers Limited

19. Central Warehousing Corporation

20. Housing & Urban Development Corporation Limited

21. Mazagon Dock Shipbuilders Limited (MDSL)