On 18th April 2024, the Department of Public Enterprise(DPE) under the Ministry of Finance has granted the Navratna status to National Fertilizers Limited(NFL).
- The upgradation of NFL from Miniratna-I to Navratna status was done under Regulation 30 read with schedule III of SEBI(Listing Obligations and Disclosure Requirements(LODR))Regulations, 2015.
- NFL is a Public Sector Undertaking (PSU) under Department of Fertilizers, Ministry of Chemicals and Fertilizers(MoCF).
Note:
i.NFL has an authorized capital of Rs 1000 crore and paid up capital of Rs490.58 crore.
ii.Government of India(GoI) hold 74.71% share of the total paid up capital and financial institutions has 25.29% share.
Criteria for grant of Navratna status to CPSEs:
i.The Central Public Sector Enterprises(CPSEs) which are Miniratna-I, schedule’A’ have obtained “excellent” or “very good” Memorandum of Understanding(MoU) ratings in 3 out of the last 5 years.
ii.The CPSEs which have composite score of 60 or above(out of 100) in following 6 selected performance indicators are eligible to considered for grant of Navratna status.
- Those 6 performance indicators are: Net Profit to Net Worth(25); Manpower cost to total production cost or services cost(15), Profit Before Depreciation, Interest and Taxes(PBDIT) to capital employed(15), PBDIT to turnover(15), Earning per share(10), Inter-Sectoral Performance (20).
iii.Granting of navratna status gives the financial autonomy to CPSEs to invest up to Rs1000 crore without any prior approval from the Central Government.
- To establish financial joint ventures and wholly owned subsidiaries in India or in Foreign country with the stipulation that the equity investment of the CPSE should be limited to the following conditions:
i.Rs1000 crore in 1 project
ii.15% of the net worth of the CPSE in 1 project
iii.30% of the net worth of the CPSE in all joint ventures/ subsidiaries put together
iv.The CPSEs should have 4 independent Board Directors.
Maharatna Scheme:
i.The scheme was introduced on 19th May, 2010 for Central Public Sector Enterprises(CPSEs).
ii.The scheme mainly focuses on empowering specific Navratna CPSEs to facilitate the expansion of their operations and emerge as global giants by increasing their market share both in domestic and international markets.
Criteria for grant of Maharatna status to CPSEs:
i.It should be listed on Indian Stock Exchange with a minimum prescribed public shareholding under Securities and Exchange Board of India(SEBI) regulations.
ii.The company should possess Navratna status.
iii.The CPSEs should have annual net worth of Rs10,000 crore for 3 years or average annual turnover of RS 20000 crore consecutively for 3 years.
iv.The CPSE should have an average annual net profit after tax of over Rs2500 crore consecutively for 3 years.
vi.CPSE should have significant global presence or international operations.
vii.These companies are free to decide on investments up to 15% of their net worth in a project.
Criteria for grant of Miniratna status to CPSEs:
i.Miniratna Category-I status: The CPSEs which have made profit consecutively for 3 years, pre –tax profit is Rs 30 crore or more in atleast 1 of 3 years and have positive net worth are eligible to be considered for grant of Miniratna-I status.
ii.Miniratna Category-II status: The CPSEs which have made profit consecutively for 3 years and have positive net worth are eligible to be considered for grant of Miniratna-II status.
iii.These CPSEs should have not defaulted in the repayment of loans or interest payment or any loans due to the Government.
iv.CPSEs shall not depend upon budgetary support or Government Guarantees.
List of Maharatna and Navratna Companies:
Maharatna Companies are:
i.Bharat Heavy Electrical Limited
ii.Bharat Petroleum Corporation Limited
iii.Coal India Limited
iv.GAIL India Limited
v.Hindustan Petroleum Corporation Limited
vi.Indian Oil Corporation Limited
vii.Oil and Natural Gas Corporation Limited
viii.Power Finance Corporation
ix.Power Grid Corporation India Limited
x.Steel Authority of India Limited
xi.Rural Electrification Corporation Limited
xii.Oil India Limited
xiii.NTPC Limited
Navratna Companies are:
i.Bharat Electronic Limited
ii.Container Corporation of India Limited
iii.Engineers India Limited
iv.Hidustan Aeronautics Limited
v.Mahanagar Telephone Nigam Limited
vi.National Aluminium Company Limited
vii.National Buildings Construction Corporation Limited
viii.Neyveli Lignited Corporation Limited
ix.NMDC Limited
x.Rashtriya Ispat Nigam Limited
xi.Shipping Corporation of India Limited
xiiRail Vikas Nigam Limited
xiiiONGC Videsh Limited
xiv.Rashtriya Chemicals and Fertilizers Limited
xv.IRCON International Limited
xvi.RITES Limited
About National Fertilizers Limited(NFL):
NFL is engaged in manufacturing and marketing of Neem coated Urea, Biofertilizers and other allied industrial products: Nitric Acid, Ammonia and Ammnia Nitrate.
Chairman and Managing Director(CMD)- U Saravanan
Headquarters- Noida, Uttar Pradesh
Incorporated in August 1974
