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Source- This post on Solar Energy Corporation of India Ltd (SECI) Achieves Navratna Status has been created based on the article “Solar Energy Corporation of India Ltd (SECI) attains Navratna Status” published in “PIB” on 31st August 2024.
Why in News?
Recently, Solar Energy Corporation of India Ltd (SECI) has been granted Navratna status by the Ministry of Finance.
About Solar Energy Corporation of India Ltd (SECI)
1. SECI was established in 2011 under the Ministry of New and Renewable Energy (MNRE), Government of India. It is primarily responsible for implementing the National Solar Mission (NSM) and other renewable energy initiatives.
2. Key Roles and Responsibilities:
i) Facilitating the development and execution of solar energy projects across India.
ii) Promoting the use and development of green hydrogen technology and initiatives.
iii) Implementing a range of renewable energy schemes and projects to enhance the renewable energy capacity in the country.
3. Importance of SECI:
i) SECI is a leading CPSE dedicated to the development and expansion of Renewable Energy (RE) capacity in India. It holds a cumulative awarded capacity of 69.25 GW and manages an annual power trading volume exceeding 42 billion units.
ii) As India’s foremost Renewable Energy Implementing Agency (REIA), SECI plays a pivotal role in advancing the country’s climate goals and promoting sustainable development.
4. Benefits of Navratna Status: Attaining Navratna status enhances SECI’s autonomy in financial and operational matters, enabling greater agility, expanded geographical presence, and a sharper focus on technology.
About Miniratna, Navratna, and Maharatna
The classification of Central Public Sector Enterprises (CPSEs) in India into Miniratna, Navratna, and Maharatna statuses is based on their financial performance, operational efficiency, and strategic importance.
| Aspects | Criteria | Description |
| Miniratna Status | Miniratna Category-I Criteria: i) Reported profits for three consecutive years. ii) Pre-tax profit of ₹30 crore or more in at least one of the three years. iii) Positive net worth. Additional Conditions: i) No default on loan or interest repayments to the government. ii) No dependency on budgetary support or government guarantees.Miniratna Category-II Criteria: i) Profitable for the last three successive years. ii) Positive net worth. Additional Conditions: i) No default on loan or interest repayments to the government. | 1. This is the initial level of recognition given to CPSEs that have demonstrated consistent profit-making and positive net worth over a certain period. 2. They are further divided into two categories: Category I and Category II, based on their financial and operational performance. 3. Miniratna I companies have greater autonomy than Miniratna II companies, allowing them to make investments and enter into joint ventures within certain financial limits without requiring government approval. |
| Navratna Status | Eligibility for Navratna status: i) Must have Miniratna-I status. ii) Achieved an “Excellent” or “Very Good” MoU rating in three out of the last five years. iii) Composite score of 60 or more in six selected performance indicators: iv) Net Profit to Net Worth. v) Manpower Cost to Total Cost of Production. | 1. Navratna status is granted to CPSEs that have demonstrated strong financial performance and have significant operational autonomy. 2. They enjoy greater independence in decision-making compared to Miniratna companies. 3. They have the authority to invest up to a certain limit without needing explicit government approval and can make more strategic and financial decisions to enhance their growth and efficiency. 4. Examples: BEL, CONCOR, Hindustan Aeronautics, NALCO, NBCC, NMDC, PFC, and IREDA (newly upgraded). |
| Maharatna Status | Eligibility for Maharatna status: i) Must have Navratna status. ii) Listed on Indian stock exchanges. iii) Compliance with minimum shareholding norms. iv) Average annual turnover exceeding ₹25,000 crore over the last three years. v) Average annual net worth over ₹15,000 crore in the last three years. vi) Average annual net profit over ₹5,000 crore in the last three years. vii) Significant global presence. | 1. Maharatna is the highest level of recognition given to the largest and most profitable CPSEs in India. 2. They are major players in their respective sectors, with substantial financial and operational freedom. 3. They have the authority to make investments and enter into joint ventures or partnerships up to a significant amount without government approval. 4. Examples: BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC. |
UPSC Syllabus: Indian Economy
