Mini Ratna-I status for Braithwaite & Co

Tags: Economics/Business

The Union Ministry of Railways has granted Miniratna -1 category status to  Braithwaite & Co as the engineering firm made a turnaround with a manifold increase in annual turnover and making profits for three consecutive years.

• The Kolkata based Public sector undertaking is under the administrative control of the Union Railway Ministry . 
• The status of Miniratna status will give the company greater financial and operational efficiency.

Miniratna 

In 1997 the Government of India introduced the concept of Miniratna  to grant greater  financial and operational autonomy to Central Public Sector Enterprises (CPSE ) .

These companies, called Miniratnas, are in two categories, namely, Category- I and Category-II.

Eligibility Criteria 

• Category-I CPSEs should have made profit in the last three years continuously, the pre-tax profit should have been Rs 30 crore or more in at least one of the three years and should have a positive net worth.
• Category-II CPSEs should have made profit for the last three years continuously and should have a positive net worth. 

Benefits of being a Miniratna Company 

Capital Expenditure

For CPSEs in category I: The power to incur capital expenditure on new projects, modernization, purchase of equipment, etc., without Government approval is  Rs. 500 crore or equal to Net worth, whichever is less.

For Category II it is Rs 250 crore or equal to Net worth,whichever is less.

Joint ventures and subsidiaries: 

For category 1 :: The ceiling on equity investment to establish joint ventures and subsidiaries in India shall be 15% of the networth of the PSE  limited to Rs. 500 crore,without government approval.

For category 11 :The ceiling on equity investment to establish joint ventures and subsidiaries in India shall be 15% of the networth of the PSE in one project limited to Rs. 250 crore,without government approval.