![What are Navratna companies?
• IN 1997, government gave the status of Navratna to 9 Public
Sector Enterprises (PSEs)giving them greater autonomy to
compete in the global market so as to “support [them] in
their drive to become global giants. Currently there are total
17 companies having the status of Navratna. Conditions are
listed below
The company must score at least 60 out of 100 on various
parameters like net profit, net worth, total manpower cost,
total cost of production, cost of services, PBDIT (Profit
Before Depreciation, Interest and Taxes), capital employed,
etc.
It Must be at the status of Miniratna.
Should have at least four independent directors on its board.
The company must have up to Rs. 1,000 crore or 15% of
their net worth on a single project or 30% of their net worth
in the whole year (not exceeding Rs. 1,000 crores).](https://image.slidesharecdn.com/ireda-180331035746/85/Ireda-7-320.jpg)
Ireda
- 1. Why in News? • European Investment Bank (EIB) and Indian Renewable Energy Development Agency (IREDA) Ltd. have signed a loan agreement for a second line of credit (LoC) of Euro 150 million on non-sovereign basis. •No sovereign private sector operations Refers to loans to guarantee for or equity investments in enterprises that are majority-owned by private parties (definedas entities with more than 50% of their capital held privately). •The line of credit is for tenure of 15 years including a grace period of 3 years, and it will be used for financing Renewable Energy and Energy Efficiency projects in India.
- 2. European Investment Bank (EIB) • The European Investment Bank (EIB) is the European Union's nonprofit long-term lending institution established in 1958 under the Treaty of Rome. • The EIB is a publicly owned international financial institution and its shareholders are the EU member states. • It should not be confused with the European Central Bank.
- 3. European Central Bank • The European Central Bank (ECB) is the central bank for the euroand administers monetary policy of the eurozone, which consists of 19 EU member states and is one of the largest currency areas in the world. • It is one of the world's most important central banks and is one of the seven institutions of the European Union (EU).
- 4. Seven institutions of the European Union (EU). • European Council • Council of the European Union • European Parliament • European Commission • Court of Justice of the European Union • European Central Bank • European Court of Auditors
- 5. Indian Renewable Energy Development Agency Ltd(IREDA) • Indian Renewable Energy Development Agency Limited (IREDA) is a Mini Ratna (Category – I) Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE). • IREDA is a Public Limited Government Company established as a Non- Banking Financial Institution in 1987 engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation with the motto: “ENERGY FOR EVER”. MNRE? • The Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of the Government of India for all matters relating to new and renewable energy. The broad aim of the Ministry is to develop and deploy new and renewable energy for supplementing the energy requirements of the country.
- 6. Meaning of Navratna,Miniratna and Maharatna Companies? • There are many Central Public Sector Enterprises (CPSE) which are functioning under Government of India and Navratna, Miniratna and Maharatna are the three terms which government uses to categorize all those CPSEs. The categorization depends upon various factors such as turnover, Net worth, Net profit on yearly basis and company’s presence in stock Exchange as per the SEBI’s rules. Questions may be asked in written exams under current affairs or general knowledge section on this topic. So, you should be aware of these terms.
- 7. What are Navratna companies? • IN 1997, government gave the status of Navratna to 9 Public Sector Enterprises (PSEs)giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants. Currently there are total 17 companies having the status of Navratna. Conditions are listed below The company must score at least 60 out of 100 on various parameters like net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc. It Must be at the status of Miniratna. Should have at least four independent directors on its board. The company must have up to Rs. 1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding Rs. 1,000 crores).
- 8. What are Miniratnas companies in India? • The concept of Miniratna was introduced by government of India in 2002 and this status was given to total 41 public sector companies. Miniratnas are allowed to enter into joint ventures, they can set subsidiary companies and can also open offices overseas but with certain limitations. Currently there are more than 70 companies having status of Miniratna(CategoryI & II).
- 9. Miniratna Category I: 1. Made profits for continuosly for last three years. 2. The company should have earned a net profit of Rs. 30 crore at least once in three years. • A company with Miniratna Category I can incur capital expenditure of up-to Rs. 500 croreor equal to their net worth, whichever is lower without the need of approval from Government. Currently total 59 companies holds the status of Miniratna Category I.
- 10. Miniratna Category II • A Public sector Company can be called as Miniratna of Category II if: 1. It has continuously made profit for last three years. 2. It has positive net worth. • Miniratna Category II company have autonomy to incurring the capital expenditure up to Rs. 300 crore or up to 50% of their net worth whichever is lower without prior approval from Government.
- 11. What are Maharatna companies in India? • Maharatna status was started in 2009. The status raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. A Maharatna firm have permission to invest 15% of their net worth in a project. • Below are the conditions for PSEs to acquire the status of Maharatna: 1. For the last three years company should have the turnover more than Rs. 25,000 Crore. 2. Net worth of the company for last three years should be more than Rs. 15,000 Crore. 3. Net profit on yearly basis should be more than Rs. 5000 Crore after paying tax for last three years. 4. The company must have its presence at Indian stock Exchange as per the SEBI’s rules of minimum prescribed public shareholding limit. 5. Currently there are seven Maharatnas and BPCL is the eights Public sector enterprise to be included in the list.
- 12. IREDA Objectives • To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency. • To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects. • To increase IREDA`s share in the renewable energy sector by way of innovative financing. • Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources. • To strive to be competitive institution through customer satisfaction.