What is the Difference Between Maharatna and Navratna Status for PSE?

The difference between Maharatna and Navratna status for Public Sector Enterprises (PSEs) in India lies in the autonomy, powers, and investments they can make. Here are the key differences:

1. Investments:

• Navratna status allows PSEs to invest up to INR 1000 crores, while Maharatna status allows investments up to INR 5000 crores.

1. Eligibility:

• A Navratna company can upgrade to Maharatna status if it has achieved an annual profit of INR 5000 crores in the last three years and has a net worth of INR 15,000 crores.

1. Autonomy:

• Maharatna companies have greater autonomy in forming strategic alliances, formulating HR policies, and undertaking financial joint ventures, subject to a ceiling of 15% of the net worth of the concerned CPSE.

1. Criteria:

• To be eligible for Maharatna status, a CPSE must have Navratna status, be listed on the Indian stock exchange with a minimum prescribed public shareholding under SEBI guidelines, and meet other criteria.

In summary, Maharatna companies have more autonomy and power than Navratna companies, allowing them to make larger investments and have greater flexibility in strategic decision-making.

Comparative Table: Maharatna vs Navratna Status for PSE

The difference between Maharatna and Navratna status for Public Sector Enterprises (PSEs) lies in the autonomy, financial powers, and investment limits granted to them. Here is a table comparing the two statuses:

In summary, Maharatna companies have more autonomy and authority compared to Navratna companies, allowing them to make larger investments without seeking government approval.