Key Terms & Concepts — UPSC Mains
Navratna CPSE
"A tier of empowered Central Public Sector Enterprises granted enhanced financial and operational autonomy by the Department of Public Enterprises."
A Navratna CPSE is a profit-making Central Public Sector Enterprise that has been granted greater financial and managerial autonomy by the Department of Public Enterprises (DPE), which sits under the Ministry of Finance. The DPE grades CPSEs into three tiers of rising autonomy, Maharatna, Navratna and Miniratna (Category I and II). A Navratna board may invest up to Rs 1,000 crore or 15 per cent of the company's net worth in a single project without prior government approval. To qualify, a CPSE must already be a Miniratna Category-I company with Schedule 'A' status, hold an 'Excellent' or 'Very Good' MoU rating in three of the last five years, and score above 60 out of 100 across six performance parameters. In June 2026 Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil, became the 28th Navratna and Garden Reach Shipbuilders and Engineers (GRSE) the 29th.
GS3 (economy, public sector enterprises, governance reform). Prelims: the granting authority is DPE under the Ministry of Finance, the Rs 1,000 crore or 15 per cent net worth investment ceiling, the composite-score and Miniratna-I plus Schedule 'A' eligibility, and the latest counts (CPCL 28th, GRSE 29th). Mains: empowerment of CPSEs versus disinvestment, balancing autonomy with accountability, and improving the competitiveness of the public sector.
- 1 Classification is done by the Department of Public Enterprises (DPE) under the Ministry of Finance (DPE moved from the Ministry of Heavy Industries to Finance in 2021).
- 2 Three tiers of rising autonomy: Maharatna, Navratna and Miniratna (Category I and II).
- 3 Navratna autonomy: the board may invest up to Rs 1,000 crore or 15 per cent of net worth in a single project without government approval.
- 4 Navratna eligibility: Miniratna Category-I status, Schedule 'A' classification, 'Excellent' or 'Very Good' MoU rating in 3 of the last 5 years, and a composite score above 60 out of 100 across six performance parameters.
- 5 Maharatna criteria: already a Navratna, listed with the prescribed public shareholding, 3-year average annual turnover above Rs 25,000 crore, average net worth above Rs 15,000 crore, average net profit above Rs 5,000 crore, plus a significant global presence.
- 6 Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil, became the 28th Navratna in June 2026 (announced 21 June 2026).
- 7 Garden Reach Shipbuilders and Engineers (GRSE), a Kolkata-based defence shipyard, became the 29th Navratna in June 2026.
- 8 Empowerment versus disinvestment: Navratna status grants operational and financial freedom while the company stays government-owned, unlike disinvestment which sells off government equity.
In June 2026 Chennai Petroleum Corporation Ltd (CPCL) was upgraded from Miniratna Category-I to become the country's 28th Navratna, letting its board commit up to Rs 1,000 crore to a single expansion project without seeking Cabinet approval.
