List of Miniratna Companies in India: Understanding Their Role and Importance

India’s vast network of Public Sector Enterprises (PSEs) forms a critical backbone for the country’s industrial and economic development. Among these, Miniratna companies hold a unique position. These companies, which have demonstrated financial autonomy and operational efficiency, play a vital role in enhancing the competitiveness of India’s public sector. 

In this article, we’ll explore how many Miniratna companies in India there are, the concept of a Miniratna company, and provide a comprehensive list of Miniratna companies in India categorized by their classifications.

Additionally, we will delve into their significance, the criteria for being designated as a Miniratna, and how these companies contribute to India’s stock markets, including their influence on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

What Is a Miniratna Company?

Before delving into the list of Miniratna companies in India, it is important to understand what a Miniratna company is. The term Miniratna refers to government-owned companies that have earned a profitable record for at least three consecutive years. The Indian government introduced this status to allow greater financial and operational autonomy to companies that met specific financial performance criteria.

Miniratna companies are divided into Miniratna Category I and Miniratna Category II. Both categories allow companies certain financial decision-making powers without requiring constant government approval. The creation of these categories aimed to reduce bureaucratic hurdles and encourage efficiency, innovation, and self-reliance in India’s public sector.

How Many Miniratna Companies Are There in India?

As of the most recent data, how many Miniratna companies are in India is the most commonly asked question. There are 68 Miniratna companies, which are further divided into two categories:

• 57 Miniratna Category I Companies
• 11 Miniratna Category II Companies

Each of these companies operates across various industries, such as telecommunications, defense, aviation, and engineering, and collectively contributes to the growth of India’s economy.

List of Miniratna Companies in India (2024)

Here’s a list of Miniratna companies in India for 2024, categorized by their respective classifications:

Miniratna Category I Companies:

1. Airports Authority of India (AAI)
2. Antrix Corporation Limited
3. Bharat Coking Coal Limited
4. Bharat Dynamics Limited (BDL)
5. Bharat Earth Movers Limited (BEML)
6. Bharat Sanchar Nigam Limited (BSNL)
7. Cochin Shipyard Limited (CSL)
8. Indian Railway Catering and Tourism Corporation Limited (IRCTC)
9. Garden Reach Shipbuilders & Engineers Limited (GRSE)
10. Goa Shipyard Limited (GSL)
11. National Fertilizers Limited (NFL)
12. NHPC Limited
13. Mazagon Dock Shipbuilders Limited (MDL)
14. Mangalore Refinery and Petrochemicals Limited (MRPL)
15. Mahanadi Coalfields Limited
16. MMTC Limited
17. RailTel Corporation of India Limited
18. SJVN Limited
19. THDC India Limited
20. Western Coalfields Limited

Miniratna Category II Companies:

1. Artificial Limbs Manufacturing Corporation of India
2. Bharat Pumps & Compressors Limited
3. Engineering Projects (India) Limited
4. FCI Aravali Gypsum & Minerals India Limited
5. Ferro Scrap Nigam Limited
6. HMT (International) Limited
7. Indian Medicines & Pharmaceuticals Corporation Limited
8. MECON Limited
9. National Film Development Corporation Limited
10. Rajasthan Electronics & Instruments Limited

These companies operate in diverse sectors and are crucial to the economic structure of India.

Overview of Leading Miniratna Companies in India

Here is an overview of 12 prominent Miniratna companies in India that play a significant role in their respective sectors:

1. Airports Authority of India (AAI)
   The Airports Authority of India (AAI) is responsible for developing, modernizing, and maintaining India’s civil aviation infrastructure. It oversees 137 airports, including 24 international airports, 10 customs airports, and 103 domestic airports.
2. Bharat Dynamics Limited (BDL)
   Bharat Dynamics Limited (BDL) manufactures and supplies guided missiles, underwater weaponry, airborne equipment, and other defense-related products for the Indian Armed Forces. It also offers life cycle support, refurbishment, and life extension services for aging missile systems.
3. Bharat Sanchar Nigam Limited (BSNL)
   BSNL is a prominent telecom service provider with extensive expertise in planning, setting up, integrating, and maintaining transmission networks and switches across India.
4. Cochin Shipyard Limited (CSL)
   Cochin Shipyard Limited (CSL) is a government-owned shipbuilder that specializes in the construction and repair of large vessels, particularly for the oil exploration sector and other commercial purposes.
5. Dredging Corporation of India (DCI)
   Dredging Corporation of India (DCI) provides essential dredging services to India’s major ports and plays a key role in maritime development. It offers domestic and international dredging solutions.
6. Garden Reach Shipbuilders & Engineers (GRSE)
   GRSE is a shipbuilding company that designs and constructs vessels for the Indian Navy and Coast Guard. It also builds commercial ships and manufactures engines and engineering products.
7. Goa Shipyard Limited (GSL)
   Goa Shipyard Limited (GSL) has constructed advanced vessels for defense and commercial use. It specializes in building modern patrol vessels with steel and aluminum hulls for various purposes.
8. India Tourism Development Corporation (ITDC)
   ITDC operates hotels and restaurants at popular tourist locations, offers transportation services, and runs duty-free shops. Additionally, it produces and distributes tourism literature and provides engineering consultancy services.
9. Indian Railway Catering & Tourism Corporation Limited (IRCTC)
   IRCTC provides online railway ticket booking services, catering on trains and at railway stations, and packaged drinking water. It also manages executive lounges, dormitories, and retiring rooms.
10. IRCON International
    IRCON International is an engineering and construction company that builds railways, metro systems, bridges, tunnels, and more. It also undertakes electrical and mechanical projects and commercial and residential infrastructure.
11. NHPC Limited
    NHPC Limited focuses on constructing, promoting, and managing hydroelectric power plants in India. It generates hydro, wind, and solar electricity, contributing to India’s energy sector.
12. Mazagon Dock Shipbuilders Limited (MDL)
    Mazagon Dock Shipbuilders Limited (MDL) has built over 800 vessels, including 27 warships and 7 submarines for the Indian Navy. It also constructs other types of vessels, such as cargo and passenger ships.

The Role of Miniratna Companies in Stock Markets

Miniratna companies are important not just because of their operational success; they also profoundly influence India’s financial markets, including the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

The NSE and BSE are India’s two largest stock exchanges and play a significant role in how publicly listed companies, including Miniratna enterprises, access capital markets for expansion, growth, and investment.

Many Miniratna companies, such as IRCTC, Cochin Shipyard Limited (CSL), and NHPC Limited, are publicly traded entities. These companies provide investment opportunities for retail and institutional investors, contributing to the vibrancy of the Indian stock markets.

Investors often seek the expertise of a stock market advisory or rely on stock portfolio management to navigate investments in such companies. This becomes especially pertinent when managing value stocks, which are often part of Miniratna companies due to their strong financial records. 

Benefits of Miniratna Status

The Miniratna status is not only prestigious but also provides companies with numerous advantages:

1. Financial Autonomy: Miniratna companies are granted financial independence in making investment decisions without government approval. Category I companies can make investment decisions of up to ₹500 crore, while Category II companies can invest up to ₹300 crore.
2. Operational Flexibility: With more freedom to make decisions, Miniratna companies can enter joint ventures, establish subsidiaries, and engage in international marketing efforts. This flexibility enhances their competitiveness and ability to adapt to global market changes.
3. Contribution to Economic Growth: These companies significantly contribute to India’s GDP, employment, and industrial output. Their performance plays a critical role in various sectors, such as energy, defense, and infrastructure.
4. Attracting Investment: Miniratna companies could be considered good investment options, particularly those listed on the BSE and NSE. Investors looking for stable and long-term returns often view these companies as “safe bets” due to their government backing and consistent profitability.

What Is BSE and NSE?

The Bombay Stock Exchange (BSE) is one of the oldest stock exchanges in Asia. It has been instrumental in the development of the Indian financial sector. The BSE lists thousands of companies, including Miniratna companies, and offers investors a platform to trade stocks and securities.

On the other hand, the National Stock Exchange of India (NSE) is a newer entity. Still, it has quickly become the largest stock exchange in India by market capitalization and trading volume. The NSE introduced electronic trading, making stock exchanges more accessible to retail investors.

Understanding what is BSE and what is NSE is important as both these platforms allow Miniratna companies to raise capital and also allow the general public to participate in the ownership of these government-backed entities.

Eligibility Criteria to Become a Miniratna Company

To qualify as a Miniratna, companies must meet specific criteria demonstrating operational efficiency and financial stability.

Miniratna Category I:

1. The company must have recorded consistent profits for the past three years.
2. It should have earned a pre-tax profit of ₹30 crore or more in at least one of these three years or maintained a turnover of at least ₹120 crore in the same period.

Miniratna Category II:

1. The company must have recorded profits for the past three years.
2. It should have earned a pre-tax profit of ₹20 crore or more in one of these three years, or sustained an average annual turnover of at least ₹80 crore in this period.

Stock Market Advisory and Portfolio Management

Working with a stock market advisory can be beneficial for those interested in investing in Miniratna companies in India. These experts help investors understand the risks and rewards associated with these companies and provide insights into market trends. Effective stock portfolio management can ensure that investments in Miniratna companies are balanced with other high-performing sectors to mitigate risk and maximize returns.

Miniratna companies, known for their strong fundamentals and long-term growth prospects, often fall under value stocks. These stocks are characterized by their low price relative to their intrinsic value, offering a long-term investment opportunity for those looking for stable growth over time.

Conclusion: 

Miniratna companies in India are essential drivers of the country’s economic development. Their operational efficiency, financial stability, and strategic importance across various sectors make them key public and private players.

With 68 companies in total spanning sectors such as defense, telecommunications, and infrastructure, Miniratna’s status contributes to India’s economy’s overall growth and resilience. By allowing for greater financial autonomy and operational flexibility, it helps these enterprises thrive in an increasingly competitive global environment.

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