Miniratna

Miniratna is a category of Public Sector Undertakings (PSUs) in India that have been granted enhanced financial and operational autonomy. The Miniratna status was introduced by the Government of India to empower these companies and improve their performance. There are two categories of Miniratnas: Miniratna Category-I and Miniratna Category-II.

Companies are granted Miniratna status based on their financial performance over a period of three years. Miniratna Category-I companies must have a positive net profit in at least three out of the preceding five years and a minimum net worth. Miniratna Category-II companies also need to have a positive net profit in at least three out of the preceding five years, but their net worth requirement is lower than Category-I.

The enhanced autonomy allows Miniratna companies to make certain capital expenditures without seeking government approval, invest in joint ventures, and expand their business operations more freely. This aims to foster greater efficiency, accountability, and competitiveness within these public sector enterprises. The specific powers and delegations differ between Category-I and Category-II Miniratnas, with Category-I companies generally having more extensive financial powers. The conferral of Miniratna status is intended to enable these PSUs to function more like commercial enterprises and contribute more effectively to the Indian economy.