Recently, GRID-INDIA has been designated as Mini-Ratna Category-I Central Public Sector Enterprise (CPSE) by the Ministry of Power.


GS-3 (Economy)

Key highlights:

  • Grid Controller of India Limited (GRID-INDIA) was conferred the status of Miniratna Category-I Central Public Sector Enterprise (CPSE) by the Ministry of Power.
  • It was established in 2009.
  • It oversees the seamless and uninterrupted operation of the Indian Power System, ensuring the efficient transfer of electric power within and across regions, and facilitating transnational power exchanges with a focus on reliability, economy, and sustainability.
  • It facilitates competitive and efficient wholesale electricity markets and administers settlement systems.

Central Public Sector Enterprises (CPSEs):

  • CPSEs are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
  • The Government of India categorizes Central Public Sector Enterprises (CPSEs) into three categories: Maharatna, Navratna, and Miniratna, based on a wide range of factors that includes financial performance and progress.
  • Maharatna:
    • Companies with more than Rs. 5,000 crores of net profit for three consecutive years.
    • Average annual turnover of Rs. 25,000 crore for three years or should have an average annual net worth of Rs. 15,000 crore for three years.
    • Should also have global operations or footprints.
    • A CPSE should also have a Navratna status and has to be listed on an Indian stock exchange.
  • Navratna Scheme:
    • Introduced in 1997 to identify Central Public Sector Enterprises (CPSEs) with comparative advantages.
    • Aims to support these CPSEs in becoming global players.
    • Eligibility Criteria:
      • Must have Miniratna status.
      • Strong global presence.
    • Examples of Navratna Companies:
      • Bharat Electronics Limited
      • Hindustan Aeronautics Limited
  • Miniratna Scheme:
    • Also introduced in 1997.
    • Aims to minimize government interference and grant more autonomy.
    • More importantly, Miniratnas should not have defaulted in any loan repayments or interest payments.
    • It shall also not depend on any government guarantees or budgetary support.
    • Miniratna Category-I:
      • Profitable for three consecutive years.
      • Pre-tax Profit of Rs. 30 crores or more in at least one year out of three.
      • Examples: Airports Authority of India
    • Miniratna Category-II:
      • Same criteria as Category-I but with a profit for three consecutive years.
      • Have a positive networth
      • Examples: Artificial Limbs Manufacturing Corporation of India