With reference to the criteria for the grant of Miniratna status to Central Public Sector Enterprises (CPSEs), consider the following statements: 1. A CPSE must have earned profits continuously for the preceding three years and should have a positive net worth to be eligible for Miniratna status. 2. A CPSE should not have defaulted in the repayment of loans or interest due to the Government and must have obtained an 'Excellent' rating under the Memorandum of Understanding (MoU) system in each of the preceding three years. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to the criteria for the grant of Miniratna status to Central Public Sector Enterprises (CPSEs), consider the following statements:
1.A CPSE must have earned profits continuously for the preceding three years and should have a positive net worth to be eligible for Miniratna status.
2.A CPSE should not have defaulted in the repayment of loans or interest due to the Government and must have obtained an ‘Excellent’ rating under the Memorandum of Understanding (MoU) system in each of the preceding three years.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation: 1 only

Statement 1 is correct: A CPSE seeking Miniratna status must have earned profits continuously for the last three years and should have a positive net worth.

Statement 2 is incorrect: While the CPSE should not have defaulted in repayment of loans or interest to the Government, there is no requirement that it must have secured an ‘Excellent’ MoU rating in each of the preceding three years. Such a condition is not part of the prescribed eligibility criteria.

Source: NOA

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS