- India
- Jul 02
- Sreesha V.M
MECON gets Miniratna Category-I status
• The government has granted Miniratna Category-I status to MECON Limited.
• The company has reported continuous profits during the last three financial years.
• It has also reported a positive net worth of Rs 535.42 crore as on March 31, 2026, thereby fulfilling the eligibility criteria prescribed by the Department of Public Enterprises (DPE) for grant of Miniratna Category-I status.
• The Miniratna Category-I status provides enhanced financial and operational autonomy to the Board of MECON Limited.
• The enhanced delegation of powers will enable the company to undertake investments, modernisation initiatives, technological upgradation and business expansion projects with greater flexibility and speed, thereby supporting its future growth trajectory.
MECON Limited
• MECON Limited is one of India’s premier engineering, consultancy, project management and contracting organisations.
• The company has made significant contributions to the development of the country’s steel sector and has diversified its operations across mining, infrastructure, power, oil & gas and other core sectors of the economy.
• It was established as Central Engineering & Design Bureau (CEDB) in 1959.
• Its headquarters is situated in Ranchi.
• From an engineering consultant for steel sector in India, today MECON has established itself as “total solutions” engineering consultancy organisation across multiple sectors.
• MECON provides an entire gamut of services required for setting up of greenfield and brownfield projects from concept to commissioning, including turnkey execution.
• It is registered with international financial institutions.
• MECON is actively exploring international markets for growth potential and has opened an overseas office in Dubai, UAE to tap the emerging international opportunities.
What is Maharatna, Navratna and Miniratna status?
• Under Articles of Association, the board of directors of Central Public Sector Enterprises (CPSEs) enjoys autonomy in respect of recruitment, promotion and other service conditions of below board level employees.
• The board of directors of a CPSE exercises delegated powers subject to broad policy guidelines issued by the government from time to time.
• The government has granted enhanced powers to the Boards of the profit-making enterprises under various schemes like Maharatna, Navratna and Miniratna.
Maharatna scheme
• The main objective of the Maharatna scheme which was introduced in 2010 is to empower mega CPSEs to expand their operations and emerge as global giants.
• Maharatna CPSEs compared to others are given greater autonomy for flexibility in respect of capital expenditure, formation of strategic alliance, formulation of HR policies, etc.
• The Board of a Maharatna CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.
• The board can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances.
Eligibility criteria for grant of Maharatna status
The CPSEs meeting the following eligibility criteria are considered for Maharatna status:
a) Having Navratna status.
b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
c) An average annual turnover of more than Rs 25,000 crore during the last three years.
d) An average annual net worth of more than Rs 15,000 crore during the last three years.
e) An average annual net profit after tax of more than Rs 5,000 crore during the last three years.
f) Should have significant global presence/international operations.
Navratna scheme
The government introduced the Navratna scheme in 1997.
Under this scheme, the Boards of Navratna CPSEs have been delegated enhanced powers in the areas of:
i) Capital expenditure
ii) Investment in joint ventures/subsidiaries
iii) Mergers & acquisitions
iv) Human resources management, etc.
Eligibility criteria for grant of Navratna status
The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and have a ‘Composite Score’ of performance to be 60 or above in six identified performance parameters are eligible to be considered for grant of Navratna status.
The parameters are:
1) Net Profit to Net worth
2) Manpower Cost to total Cost of Production or Cost of Services
3) Profit Before Depreciation, Interest and Tax (PBDIT) to Capital Employed
4) Profit Before Interest and Tax (PBIT) to Turnover
5) Earning Per Share
6) Inter-Sectoral Performance.
Miniratna scheme
• In October 1997, the government decided to grant enhanced autonomy and delegation of financial powers to some other profit making companies subject to certain eligibility conditions and guidelines to make them efficient and competitive.
• These companies, called Miniratnas, are in two categories, namely, Category-I and Category-II.
• Category-I CPSEs should have made profit in the last three years continuously, the pre-tax profit should have been Rs 30 crore or more in at least one of the three years and should have a positive net worth.
• Category-II CPSEs should have made profit for the last three years continuously and should have a positive net worth.
• The Miniratna (Category-I) status empowers the Board to incur capital expenditure on new projects, modernisation, purchase of equipment, etc, without government approval up to Rs 500 crore or equal to net worth, whichever is less.
• The Miniratna (Category-II) status empowers the Board to incur capital expenditure on new projects, modernisation, purchase of equipment, etc, without government approval up to Rs 250 crore or equal to net worth, whichever is less.
(The author is a trainer for Civil Services aspirants.)