Only 5 navratnas figure among Top 10
The 2005-06 report card of the top 10 profit-making public sector units dispels the belief that navratnas are the best in terms of performance. Only five navratnas feature in the top 10 list.
By Ritu Gupta & Gunjan Pradhan Sinha, TNN |
NEW DELHI: The 2005-06 report card of the top 10 profit-making public sector units dispels the belief that navratnas are the best in terms of performance. Only five navratnas feature in the top 10 list.
In fact, the list includes BSNL that had applied for navratna status long ago but is yet to be given a green signal. This implies that the government needs to rework its policy of granting navratna status to companies, according to experts. The navratna designation applies to PSUs that have made profits continuously for three years or earned a net profit of Rs 30 crore or more in this period.
They enjoy certain powers like setting up new projects or going for expansion without obtaining government���s approval. The top 10 profit-making companies are ONGC, BSNL, NTPC, IOC, SAIL, Gail, NMDC, NPCIL, CIL and OIL, according to the latest data on PSUs. Out of these, ONGC, NTPC, SAIL, IOC and GAIL are navratnas.
ONGC, BSNL and NTPC ranked respectively first, second and third among the top 10 profit-making companies ��� a trend that coincides with the sector-wise performance during the fiscal. ONGC���s profit was Rs 14,430.8 crore whereas that of BSNL was Rs 8,939.7 crore. The top 10 score holders accounted for 62% of the total profits of all PSUs.
The profit of MTNL, one of the navratnas that did not make it to the list, was Rs 538 crore, down by 38.37% compared with the 2004-05 figures. BPCL, HPCL and BHEL are other navratnas that did not make it to the top 10 list. Apart from BSNL, the other companies wanting navratna status include Power Finance Corporation, Rural Electrification Corporation, Power Grid, National Hydroelectric Corporation, Nalco and Hindustan Aeronautics.
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