Navratna Status granted to EIL and NBCC
The Union Government conferred Navratna status upon two Central Public Sector (CPSEs)– Engineers India Ltd (EIL) and National Buildings Construction Corporation (NBCC).
Department of Public Enterprises under the Ministry of Heavy Industries and Public Enterprises bestowed the Navratna status to these entities to provide them greater financial and operational autonomy. It will provide the companies greater flexibility in deciding on business propositions such as forming joint ventures or taking decision on projects involving major investments.
Key criteria for CPSEs to be eligible for Navratna status:
Should have Schedule A and Miniratna Category-1 status.
Should have at least 3 excellent or very good Memorandum of Understanding (MoU) ratings during the last 5 years.
Should have a composite score of 60 or above out of 100 marks based on its performance during the last 3 years on the six efficiency parameters which are:
- Net Profit to Net Worth
- Manpower cost to cost of production or services
- Gross margin to capital employed
- Gross profit to Turnover
- Earnings per Share
- Inter-Sectoral comparison based on Net profit to net worth.
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Month: Current Affairs - June, 2014