20-Feb-2007

Navratna List Expands

To include HAL, BEL and five others. From The Telegraph:
For navratna status, a PSU needs to be up to the mark on six parameters set by the department of public enterprises.

These include the ratio of manpower cost to cost of production; ratio of net profit to net worth; ratio of profit before interest and tax to turnover; earnings per share; and the performance of the PSU vis-a-vis others in its sector.

The scoring is on 100, and a PSU needs to score at least 60. The highest weight of 25 is given to the net profit to net worth ratio followed by the performance of the PSU in its sector. The parameters will be checked for three consecutive years.
They say government has no business being in business. But these PSUs seem to be doing well enough.

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