Maharatna status to Power Finance Corporation


  • Govt. of India accorded  ‘Maharatna’ status to Power Finance Corporation (PFC), thus giving PFC greater operational and financial autonomy.

About Maharatna status to Power Finance Corporation

  • Incorporated in 1986, PFC is the largest Infrastructure Finance Company today, exclusively dedicated to Power Sector under the administrative control of the Ministry of Power. Maharatna status to Power Finance Corporation
  • Conferment of ‘Maharatna’ status is a reflection of the confidence of the Govt. of India on PFC’s strategic role in the overall development of Indian Power Sector and an endorsement of its sterling performance.

Significance of Maharatna Status to Power Finance Corporation

  • This new recognition will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable & reliable ‘Power For All 24×7’.
  • The enhanced powers that come with Maharatna Status will also help PFC in pushing the Government’s agenda of funding under the National Infrastructure Pipeline, national commitment of 40% green energy by 2030 and effective monitoring and implementation of the New Revamped Distribution Sector Scheme.
  • The grant of ‘Maharatna’ status to PFC will impart enhanced powers to the PFC Board while taking financial decisions.
  • The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to Rs.5,000 crore in one project.
  • The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training.
  • They can also enter into technology Joint Ventures or other strategic alliances among others.
  • With the enhanced powers of Maharatna, PFC will diversify its operations to further accelerate its business growth going forward and leverage its position for achieving the Government’s objectives for the overall development of Power Sector.

Back to Basics

Central Public Sector Enterprises

  • The CPSEs are run by the Government under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises.
  • The government grants the status of Navratna, Miniratna and Maharatna to them based upon the profit made by these CPSEs.
  • The Maharatna category has been the most recent one since 2009, other two have been in function since 1997.


Particulars Maharatna Navratna Miniratna Category-I Miniratna Category-II
Eligibility Three years with an average annual net profit of over ₹2,500 crore


Average annual Net worth of ₹10,000 crore for 3 years


Average annual Turnover of ₹20,000 crore for 3 years


A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc.,


A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna

Have made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years Have made profits continuously for the last three years and should have a positive net worth.
Benefits for investment ₹1,000 crore – ₹5,000 crore, or free to decide on investments up to 15% of their net worth in a project  

Up to ₹1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year

Up to ₹500 crore or equal to their net worth, whichever is lower Up to ₹300 crore or up to 50% of their net worth, whichever is lower

Source: PIB

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