Public Sector Undertakings — Maharatna, Navratna, Miniratna and Disinvestment

Why the 'Ratna' Ladder Keeps Appearing in Exams

A Central Public Sector Enterprise (CPSE) is a company in which the Union government holds 51% or more of the equity. After 1991, the government wanted its strongest companies to compete with private and global firms, but every big investment decision needed ministry approval, which slowed them down.

The solution was a ladder of status: Miniratna and Navratna (both introduced in 1997) and Maharatna (introduced in 2009–10). Each higher rung gives the company's board more financial and operational autonomy — mainly the power to invest large sums in projects, joint ventures and overseas acquisitions without seeking government permission.

That single idea is the exam key: the Ratna title is about autonomy, not an award. Questions test the order of the ladder, the year each tier began, the entry criteria, and the investment ceiling each tier unlocks. A few memory anchors cover almost all of them.

1. Which is the correct order of PSU status, from lowest to highest autonomy?

2. In which year was the Maharatna category introduced for central public sector enterprises?

3. Which of the following was among the first companies to be granted Maharatna status in 2010?

4. Which condition applies to Miniratna Category I but NOT to Miniratna Category II?

5. What is the minimum average annual net profit after tax (over three years) required for Maharatna status?

6. When the government sells a majority stake in a PSU along with transfer of management control to a private buyer, it is called:

7. DIPAM, the department that manages the government's disinvestment programme, works under which ministry?

8. Up to what amount can the board of a Navratna company invest in a single project without government approval?