Consider the following statements about India’s maharatna, navratna and miniratna public sector enterprises:
(A) Many of them were formed in the 1950s and 1960s, when self-reliance was an important element of public policy.
(B) They were set up to provide infrastructure and direct employment, so that quality end-products reach the masses at a nominal cost.
(C) Their special status gave them greater financial, managerial and operational autonomy.
(D) The granting of special status resulted in poorer performance of these companies.
(E) The government has now decided to retain them in the public sector but bar them from raising resources from financial markets.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (C) only
(A) Many of them were formed in the 1950s and 1960s, when self-reliance was an important element of public policy. — Correct. Many were set up in the 1950s and 1960s, when self-reliance was a goal.
(B) They were set up to provide infrastructure and direct employment, so that quality end-products reach the masses at a nominal cost. — Correct. This was the purpose for which they were set up.
(C) Their special status gave them greater financial, managerial and operational autonomy. — Correct. The status brought greater autonomy in taking decisions.
(D) The granting of special status resulted in poorer performance of these companies. — Incorrect. The status resulted in better performance of these companies.
(E) The government has now decided to retain them in the public sector but bar them from raising resources from financial markets. — Incorrect. The government keeps them in the public sector and lets them raise resources by themselves from financial markets.
NCERT (2026-27): “Box 3.1: Navratnas and Public Enterprise Policies … In order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalised global environment, the government identifies PSEs and declare them as maharatnas, navratnas and miniratnas. They were given greater financial, managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. The Central Public Sector Enterprises are designated with different status. A few examples of public enterprises with their status are as follows: (i) Maharatnas – (a) Indian Oil Corporation Limited, and (b) Steel Authority of India Limited, (ii) Navratnas – (a) Hindustan Aeronautics Limited, (b) Mahanagar Telephone Nigam Limited; and (c) Indian Railway Catering and Tourism Corporation Limited. and (iii) Miniratnas – (a) Bharat Sanchar Nigam Limited; (b) Airport Authority of India. Many of these profitable PSEs were originally formed during the 1950s and 1960s when self-reliance was an important element of public policy. They were set up with the intention of providing infrastructure and direct employment to the public so that quality end-product reaches the masses at a nominal cost and the companies themselves were made accountable to all stakeholders. The granting of status resulted in better performance of these companies. Scholars allege that instead of facilitating public enterprises in their expansion and enabling them to become global players, the government partly privatised them through disinvesment. Of late, the government has decided to retain them in the public sector and enable them to expand themselves in the global markets and raise resources by themselves from financial markets.” |