Maharatna Companies in India

Maharatna companies in India are a distinct category among Public Sector Undertakings. The term “Maharatna”, which means “a great jewel” in Hindi, highlights the importance of these companies in the national economy and their impact globally. To have the Maharatna status, companies must meet specific criteria set by the Indian government, including already holding Navratna status, being listed on India’s stock exchange with a minimum prescribed public shareholding, and maintaining strong financial performance.

Let us discuss more on the Maharatna Companies in India!

Maharatna Companies in India

List of Maharatna Companies in India

Here’s the list of Maharatna companies in India provided in a table format with serial numbers:

Sl.No	Maharatna Company
1	NTPC Limited (NTPC)
2	Oil and Natural Gas Corporation Limited (ONGC)
3	Steel Authority of India Limited (SAIL)
4	Bharat Heavy Electricals Limited (BHEL)
5	Indian Oil Corporation Limited (IOCL)
6	Hindustan Petroleum Corporation Limited (HPCL)
7	Coal India Limited (CIL)
8	GAIL India Limited (GAIL)
9	Bharat Petroleum Corporation Limited (BPCL)
10	Power Grid Corporation of India Limited (POWERGRID)
11	Power Finance Corporation
12	Rural Electrification Corporation Limited
13	Oil India Ltd

What are Maharatna Companies?

Maharatna Companies are a special category of large, state-owned enterprises in India that have been granted significant autonomy and empowerment by the Government of India. These companies are among the most influential and financially robust public sector undertakings (PSUs) in the country. The designation of Maharatna status signifies the highest level of recognition and trust conferred upon select PSUs based on their performance, scale, and strategic importance to the nation’s economy.

Features of Maharatna Companies

1. Autonomy: Maharatna status grants these companies greater autonomy in decision-making and operational independence, allowing them to undertake key business initiatives and strategic investments without prior government approval up to a certain limit.
2. Financial Flexibility: They have enhanced financial powers, including the authority to make substantial capital expenditures, undertake mergers and acquisitions, and form joint ventures both domestically and internationally.
3. Global Reach: Maharatna Companies typically have a significant presence in international markets and engage in global business activities, contributing to India’s economic diplomacy and enhancing its competitiveness on the global stage.
4. Strategic Importance: These companies play critical roles in sectors considered vital for the country’s economic growth and national security, such as energy, infrastructure, steel, petroleum, and power generation.
5. Performance Criteria: The criteria for granting Maharatna status include factors such as the company’s size (measured by turnover and net worth), profitability, global operations, and adherence to corporate governance norms.
6. Prestige and Recognition: Being designated as a Maharatna Company is a prestigious recognition that underscores the company’s leadership position within its industry and its significant contributions to the nation’s development.

Eligibility Criteria for a Maharatna Company

The Maharatna status has certain eligibility criteria, including:

• Having Navratna status.
• Being listed on India’s stock exchange with a minimum prescribed public shareholding under SEBI regulations.
• Achieving an annual net profit of around 5000 crores after tax collection for the last three years, with an average turnover of Rupees 25 crore during the same period.
• Maintaining a substantial global presence and engaging in international operations.

Maharatna Companies: Brief Details of 13 Public Sector Enterprises

Given below important features of 13 Maharatna Companies:

1. Oil and Natural Gas Corporation (ONGC)

• Established in 1955 under Jawaharlal Nehru’s Prime Ministership, ONGC began as an Oil and Gas division within the Geological Survey of India.
• Progressing from a Directorate to a Commission named Oil & Natural Gas Commission in August 1956.
• Evolving further, it became a Corporation in 1994 and achieved Navratna status in 1997, later attaining Maharatna status in 2010.
• ONGC holds the position of India’s largest producer of crude oil and natural gas.
• It contributes significantly, approximately 71%, to the country’s domestic oil and natural gas production.

2. Indian Oil Corporation Limited (IOCL)

• Maharatna status was awarded on August 3, 2023, based on a recommendation from the Ministry of Finance of the Indian government.
• Oil India Limited (OIL) is a government-owned enterprise playing a key role in exploring, developing, and producing crude oil and natural gas. It is also involved in transporting crude oil and manufacturing liquid petroleum gas.
• The Ministry of Petroleum and Natural Gas oversees its operations.
• OIL’s headquarters are situated in Duliajan, Assam, and it has offices in Duliajan, Noida, Guwahati, and Jodhpur.

3. National Thermal Power Corporation (NTPC)

• NTPC, founded in 1975, is India’s largest energy producer. Its purpose is to supply reliable and efficient power in an economical and environmentally friendly manner. Over the years, it has become a significant player in the power generation industry.
• NTPC generates electricity not only from fossil fuels but also from renewable sources like hydropower. This supports India’s INDC goal of reducing carbon footprint by 33-35% by 2030 from 2005 levels, as outlined in UNFCCC.
• The company has expanded into power trading, power professionals, rural electrification, and coal mining.
• Recognized as a Maharatna company in May 2010.
• Ranks second among the Top 250 Global power companies as an Independent Power Producer.

4. Steel Authority of India Limited (SAIL)

• SAIL’s roots can be traced back to Hindustan Steel Limited (HSL), established in January 1954.
• Headquartered in New Delhi.
• The largest steel-producing company in India.
• Manages five integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro, and Burnpur, along with three special steel plants at Salem, Durgapur, and Bhadravathi.
• Received the “Best of All” Rajiv Gandhi National Quality Award for its Bhilai and Bokaro plants in 1993, 2006, and 2007.

5. Bharat Heavy Electricals Limited (BHEL)

• BHEL was established in 1956 and converted into a public company in 1991.
• Specialising in design, engineering, manufacturing, and construction.
• Involved in testing, commissioning, and servicing a range of products.
• Noteworthy for being the largest investor in research and development (R&D) among corporate entities in India.
• Possesses the capability to provide 20,000 MW per year of power equipment to address the rising demand for power generation.

6. Coal India Limited (CIL)

• Established in 1975.
• Headquartered in Kolkata, West Bengal.
• Awarded Maharatna status by the Indian government in April 2011.
• Globally recognized as the largest coal-producing company.
• Subsidiaries of Coal India Limited (CIL) include:
  • Western Coalfields Limited (WCL)
  • Central Coalfields Limited (CCL)
  • Mahanadi Coalfields Limited (MCL)
  • South Eastern Coalfields Limited (SECL)
  • Bharat Coking Coal Limited (BCCL)
  • Eastern Coalfields Limited (ECL)
  • Northern Coalfields Limited (NCL)
  • Central Mine Planning and Design Institute (CMPDI)

7. GAIL (India) Limited

• GAIL was established as a Central Public Sector Undertaking in 1984.
• Initially focused on the construction, maintenance, and operation of the Hazira Jagdishpur pipeline project.
• Mission is “Enhancing quality of life through clean energy and beyond.”
• Manages a network of approximately 14,488 km of natural gas pipelines.
• Engaged in multiple pipeline projects to extend GAIL’s reach.
• Commands around 70% market share in gas transmission projects and approximately 50% in gas trading nationwide.
• GAIL is also expanding into renewable energy sectors such as Solar, Wind, and Biofuel.

8. Oil India Limited (OIL)

• OIL was incorporated as a Central Public Sector Undertaking.
• It strated with a focus on exploring, developing, and producing crude oil and natural gas.
• Headquartered in Duliajan, Assam, OIL operates under the Ministry of Petroleum and Natural Gas.
• The company was granted Maharatna status in October 2021.
• It plays an important role in India’s energy sector by contributing to the exploration and production of oil and natural gas.
• OIL has offices in Duliajan, Noida, Guwahati, and Jodhpur, overseeing its various operations.
• In November 2017, they launched a major Green Bond issue and raised US$400 million.

9. Power Grid Corporation of India Limited (POWERGRID)

• It was established in 1989 under the Companies Act of 1956 as the National Power Transmission Corporation of India Limited.
• Renamed POWERGRID in 1992.
• Among the largest electric power transmission utilities in India.
• Holds the Maharatna status granted by the Union government.
• Headquartered in Gurugram.

10. Bharat Petroleum Corporation Limited (BPCL)

• Established by the British in 1891 for exploration in the Assam and Burma region.
• Nationalized in 1976 under the Act on the Nationalization of Foreign Oil Companies, including ESSO (1974), Burma Shell (1976), and Caltex (1977).
• Renamed Bharat Petroleum Corporation Limited on August 1, 1977.
• Awarded Maharatna Status in 2017.
• Ranks as India’s second-largest fuel retailer and government-owned downstream oil corporation.
• Operates under the Ministry of Petroleum and Natural Gas.
• Manages refineries in Mumbai, Kochi, Bina, and Numaligarh.
• Some of its subsidiaries include Indraprastha Gas Limited (IGL), Petronet LNG, and Bharat Renewable Energy Limited.

11. Power Finance Corporation (PFC)

• Established in 1986.
• Achieved Maharatna status in October 2021.
• Ranks as the 8th highest profit-making Central Public Sector Enterprise (CPSE), according to the Department of Public Enterprises Survey for FY 2017–18.
• Operates under the Ministry of Power.
• Organized into three wings, each led by a Functional Director: Commercial Division, Projects Division, and Finance & Financial Operations Division.
• In November 2017, it initiated a significant Green Bond issue, raising US$400 million.

12.Hindustan Petroleum Corporation Limited (HPCL)

Hindustan Petroleum Corporation Limited (HPCL) is a Navratna PSU and a major player in the oil and gas industry in India. Established in 1974, HPCL is engaged in various segments of the hydrocarbon value chain, including refining, marketing, and distribution of petroleum and petrochemical products.

13. Rural Electrification Corporation Limited

The Rural Electrification Corporation Limited (REC) is a leading public sector enterprise in India that specializes in financing power infrastructure projects, particularly in rural and remote areas. Here are some brief details about REC:

• Establishment: REC was established on July 25, 1969, under the Companies Act 1956, as a wholly-owned Government of India enterprise.
• Objective: The primary objective of REC is to facilitate the electrification of rural areas and provide financial assistance for various power sector projects.
• Status: REC is classified as a Navratna Central Public Sector Enterprise (CPSE), signifying its high performance and significant contributions to the nation’s development.

FAQs On Maharatna Companies

Which was the first Maharatna company in India?

The first Maharatna company in India was Oil and Natural Gas Corporation Limited (ONGC). ONGC was conferred with the Maharatna status by the Government of India on December 24, 2010. 

Which is the 11th Maharatna company in India?

Power Finance Corporation Limited is the 11th Maharatna Company in India. 

How many Maharatna companies in India?

The Indian government has classified Central Public Sector Enterprises into three distinct categories, namely Maharatna, Navratna, and Miniratna. As of 2023, there are 13 Maharatna companies in India, representing the pinnacle of excellence and strategic importance. 

Which is 12th Maharatna company in India?

The Rural Electrification Corporation (REC) has been given the designation of a “Maharatna” Central Public Sector Enterprise (CPSE) by an order from the Department of Public Enterprises, which is part of the Ministry of Finance, dated September 22, 2022.

What is the difference between Maharatna and Navratna?

Navratna company can invest up to 1000 crore without the government approval. Maharatna status is given to the company who has recorded more than Rs 5000 crore.