Industrial Sickness in India

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Industrial Sickness India

  • Industrial sickness is one of the major problems of Indian industrial sector. It creates problem of wasting financial resources, puts a burden on banks and also enhances the public expenditure.
  • In 1985, Tiwari Committee was appointed to probe into the problems of industrial sickness. On the basis of its recommendations, Sick Industrial Companies Act (SICA) was proposed and later on in Jan 1987, a statutory institution named Board for Industrial and Financial Reconstruction (BIFR) was set-up.
  • Primary responsibility for tackling problems of industrial sickness is vested in it.

Navratnas of India :

  • Navratnas was the tide given originally to nine Public Sector Enterprises or PSE, identified by the Government of India in 1997 as its crown jewels or the most prestigious PSEs, which allowed them greater autonomy to compete in the global market.
  • The number of PSEs having navratna status has now been raised to 18, the most recent addition being Coal India Limited.

Criterion of Selection :

  • Navratna status is conferred by Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 (of the total 100) .The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes) to capital employed, PBDIT to turnover,. EPS (Earning Per Share) and inter-sectoral performance.
  • Additionally, a company must first be a miniratna and must have four independent directors on its board before it can be made a Navaratna.
  • The ‘Navaratna’ status offers a company enhanced financial and operational autonomy and empowers it to invest up to Rs.1000 cr or 15% of their net worth on a single project without seeking government approval.
  • In a year, these companies can spend up to 30% of their net worth not exceeding Rs.1000 cr. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

List of Navratnas India :

  • Bharat Electronics Limited (BEL)
  • Bharat Heavy Electricals Limited (BHEL)
  • Bharat Petroleum Corporation Limited (BPCL)
  • Coal India Limited (CIL)
  • Gas Authority of India Limited (GAIL)
  • Hindustan Aeronautics Limited (HAL)
  • Hindustan Petroleum Corporation Limited (HPCL)
  • Indian Oil Corporation Limited (IOC)
  • Mahanagar Telephone Nigam Limited (MTNL)
  • National Aluminium Company Limited (NALCO)
  • National Mineral Development Corporation (NMDC)
  • National Thermal Power Corporation Limited (NTPC)
  • Oil & Natural Gas Corporation Limited (ONGC)
  • Power Finance Corporation Limited (PFC)
  • Power Grid Corporation of India Limited (PGC)
  • Rural Electrification Corporation Limited (REC)
  • Shipping Corporation of India Limited (SCI)
  • Steel Authority of India Limited (SAIL)

Miniratnas in India :

  • In addition, the Government created another category called Miniratna.
  • Miniratna can also enter into joint ventures, set subsidiary companies and overseas offices but with certain conditions.
  • In 2002, there were 41 government enterprises that were awarded Miniratna status.

Category I Miniratna :

  • This designation applies to PSEs that have made profits continuously for the last three years or earned a net profit of ₹ 30 crores or more in one of the three years, these miniratnas granted certain autonomy like incurring capital expenditure without government approval up to ₹ 500 crores or equal to their net-worth, whichever is lower.

Category II Miniratna :

  • This category includes those PSEs which have made profits for the last three years continuously and should have a positive net-worth. Category II miniratnas have autonomy to incurring the capital expenditure without government approval up to ₹ 300 crores or up to 50% of their net-worth whichever is lower.

Miniratna Category – I List :

  1. Airport Authority of India
  2. Balmer Lawrie & Co. Limited
  3. Bharat Dynamics Limited
  4. BEML Limited
  5. Bharat Sanchar Nigam Limited
  6. Bongaigaon Refineries & Petrochemicals Limited
  7. Broadcast Engineering Consultants (I) Limited
  8. Central Warehousing Corporation
  9. Central Coalfields Limited
  10. Chennai Petroleum Corporation Limited
  11. Cochin Shipyard Limited
  12. Container Corporation of India Limited
  13. Dredging Corporation of India Limited
  14. Engineers India Limited
  15. Garden Reach Shipbuilders & Engineers Limited
  16. Goa Shipyard Limited
  17. Hindustan Copper Limited
  18. Hindustan Latex Limited
  19. Hindustan Newsprint Limited
  20. Housing & Urban Development Corporation Limited
  21. India Tourism Development Corporation Limited
  22. Indian Railway Catering & Tourism Corporation Limited
  23. IRCON International Limited
  24. Kudremukh Iron Ore Company Limited
  25. Mazagaon Docks Limited
  26. Mahanadi Coalfields Limited
  27. Mangalore Refinery & Petrochemicals Limited
  28. Mishra Dhatu Nigam Limited
  29. MMTC Limited
  30. MSTC Limited
  31. National Fertilizers Limited
  32. Neyveli Lignite Corporation
  33. NHPC Limited
  34. Northern Coalfields Limited
  35. Numaligarh Refinery Limited
  36. Oil India Limited
  37. Rashtriya Chemicals & Fertilizers Limited
  38. Rashtriya Ispat Nigam Limited
  39. RITES Limited
  40. Satluj Jal Vidyut Nigam Limited
  41. South Eastern Coalfields Limited
  42. State Trading Corporation of India Limited
  43. Telecommunications Consultants (India) Limited
  44. Western Coalfields Limited

Miniratna Category-Ii Cpses :

  1. Educational Consultants (I) Limited
  2. Engineering Projects (I) Limited
  3. Ferro Scrap Nigam Limited
  4. HMT (International) Limited
  5. HSCC (India) Limited
  6. India Trade Promotion Organization
  7. Indian Medicines Pharmaceuticals Corporation Limited
  8. Manganese Ore India Limited
  9. M E C O N Limited
  10. National Film Development Corporation Limited
  11. P E C Limited
  12. Rajasthan Electronics & Instruments Limited
  13. Water & Power Consultancy (India) Limited
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