Public Sector Enterprises (PSEs) play a crucial role in India’s economic development. To enhance their efficiency and grant them greater autonomy, the Government of India has classified PSEs into different categories: Maharatna, Navratna, and Miniratna. Among these, Maharatna PSEs hold the highest status, signifying their strategic importance, financial strength, and operational autonomy.

The Maharatna status was introduced by the Government of India in 2010 to empower large PSEs with greater financial and managerial autonomy. As of recent updates, there are 14 Maharatna PSEs.

To qualify as a Maharatna, a company must fulfil the following criteria:

• It must be listed on the Indian stock exchange with a minimum public shareholding as prescribed by SEBI.
• It should have an average annual turnover of at least ₹25,000 crore over the last three years.
• It must have an average annual net worth of at least ₹15,000 crore over the last three years.
• It should have an average annual net profit of at least ₹5,000 crore over the last three years.
• The company should have significant global presence or international operations.

Some key benefits of Maharatna status:

Greater Autonomy: Maharatna companies enjoy greater operational and financial autonomy compared to other CPSEs. This allows them to make quicker and more efficient decisions.

Investment Capabilities: These companies can invest up to ₹5,000 crore or 15% of their net worth in a single project without requiring government approval.

Strategic Flexibility: Maharatna companies have the freedom to undertake mergers, acquisitions, and strategic investments both domestically and internationally.

Human Resource Management: The Board of Directors of Maharatna companies has the authority to create posts below the level of the Board of Directors and make decisions related to human resource management and training.

Global Expansion: The status aims to empower these companies to expand their operations and emerge as global giants.

Financial Performance: To qualify for Maharatna status, companies must demonstrate exceptional financial performance, including high turnover, net worth, and profitability over the past three years.