Miniratna Category-I status to Yantra India Limited
Kartavya Desk Staff
Source: News on Air
Subject: Economy
Context: Raksha Mantri Shri Rajnath Singh approved the grant of Miniratna Category-I status to Yantra India Limited (YIL).
About Miniratna Category-I status to Yantra India Limited:
What is Miniratna status?
• Miniratna is a classification given to profit-making Central Public Sector Enterprises (CPSEs) to grant them enhanced financial and operational autonomy, short of Navratna/Maharatna levels, so they can operate more efficiently and competitively.
Historical background:
• Introduced in October 1997 by the Government of India.
• Objective: To decentralise decision-making and empower efficient CPSEs (other than Navratnas) through delegated financial powers.
Types of Miniratna CPSEs:
• Miniratna Category-I – Higher autonomy
• Miniratna Category-II – Moderate autonomy
Eligibility criteria for Miniratna status
• Common conditions (for both Category-I & II) Continuous profit in the last 3 years Positive net worth No default in repayment of Government loans/interest No dependence on budgetary support or Government guarantees Board to be restructured with at least three non-official (independent) Directors
• Continuous profit in the last 3 years
• Positive net worth
• No default in repayment of Government loans/interest
• No dependence on budgetary support or Government guarantees
• Board to be restructured with at least three non-official (independent) Directors
• Additional criteria:
• Category-I: Pre-tax profit of ₹30 crore or more in at least one of the last three years Category-II: Profit in all last three years (no minimum profit threshold specified)
• Category-I: Pre-tax profit of ₹30 crore or more in at least one of the last three years
• Pre-tax profit of ₹30 crore or more in at least one of the last three years
• Category-II: Profit in all last three years (no minimum profit threshold specified)
• Profit in all last three years (no minimum profit threshold specified)
Key features & delegated powers (Category-I focus)
Capital expenditure:
• Power to incur capex up to ₹500 crore or net worth (whichever is less) without Government approval.
• Covers new projects, modernisation, and purchase of equipment.
Joint ventures & subsidiaries:
• Same financial limits as capital expenditure.
• Enables faster expansion and collaboration.
Mergers & acquisitions:
• Permitted if aligned with growth plan and core business.
• Investments abroad require CCEA to be kept informed.
Human Resource Development (HRD):
• Boards can design and implement HR policies, training, VRS, CRS.
• Powers can be further delegated for appointments, postings, transfers below Board level.
Foreign travel:
• CEOs can approve emergency foreign tours up to 5 days for functional directors (with intimation).
Technology & strategic alliances:
• Boards can enter technology JVs, strategic alliances, and acquire know-how, subject to Government guidelines.