The Ministry of Heavy Industries & Public Enterprises provided data on the performance of CPSEs from 2015-16 to 2017-18. While the Coal & Petroleum sector has seen profits, the Telecommunication sector’s losses have increased.
A question was raised in the Lok Sabha to the Ministry of Heavy Industries and Public Enterprises regarding the performance of Public Enterprises. In response, the Minister of Heavy Industries and Public Enterprises provided the following numbers on 09 July 2019.
As per Public Enterprises Survey (2017-18) which on the performance of Central Public Sector Enterprises (CPSEs), there were 257 CPSEs in operation as on 31 March 2018. Public Enterprises Survey reports for various years can be found here. More details about the types of CPSEs, their categorization is in the following paragraphs.
What is the Department of Public Enterprises?
In their 52nd Report, the Estimates Committee of 3rd Lok Sabha (1962-67) stressed the need for setting up a centralized coordinating unit, which could also make continuous appraisal of the performance of public enterprises. This led to the setting up of the Bureau of Public Enterprises (BPE) in 1965 in the Ministry of Finance. Subsequently, it was made a full-fledged Department known as the Department of Public Enterprises (DPE). Presently, it is part of the Ministry of Heavy Industries & Public Enterprises.
The Department of Public Enterprises is the nodal department for all the Central Public Sector Enterprises (CPSEs) and formulates policy pertaining to CPSEs. It lays down policy guidelines on performance improvement and evaluation, autonomy and financial delegation and personnel management in CPSEs. It also collects and maintains information in the form of a Public Enterprises Survey on several areas in respect of CPSEs.
What are Maharatna, Navratna & Miniratna?
Criteria for grant of Maharatna status : The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status.
- Having Navratna status.
- Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
- Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
- Average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
- Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.
- Should have significant global presence/international operations.
Criteria for grant of Navratna status: The Miniratna Category – I which have obtained ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in three of the last five years, and have composite score of 60 or above in the six selected performance parameters (given below) are given this status.
- net profit to net worth
- manpower cost to total cost of production/services
- profit before depreciation, interest and taxes to capital employed
- profit before interest and taxes to turnover
- earning per share and
- inter-sectoral performance
Criteria for grant of Miniratna status: The CPSEs which have made profits in the last three years continuously and have positive net worth are eligible to be considered for grant of Miniratna status.