New Delhi (27.10.2025): A high-powered Working Committee, constituted by the Cabinet Secretary, has initiated a comprehensive review of the existing framework governing the autonomy of Central Public Sector Enterprises (CPSEs). Sources indicate the ten-member body held its inaugural meeting earlier this month to kickstart the crucial exercise aimed at redefining the operational and financial independence of public sector giants.
Key Objectives of the Review: The primary objectives of the review process can be summarized into three strategic areas designed to enhance the competitive edge and efficiency of CPSEs:
Enhanced Autonomy:
The core mandate is to formulate measures that will significantly enhance and realign the financial and functional autonomy of CPSEs, allowing for quicker decision-making and better market responsiveness.
Ratna and Schedule Review:
The Committee is tasked with reviewing the existing eligibility criteria for the prestigious 'Ratna' scheme (Miniratna, Navratna, Maharatna) and the overarching Schedule categorization framework.
Objective Categorisation:
Perhaps the most complex task is the introduction of 'objective criteria for categorization.' This new standard will supplement the existing guidelines (dated November 30, 2011) to address the sheer diversity across CPSE sectors—from energy to manufacturing—thereby ensuring a level-playing field when awarding status and privileges.
Committee Composition:
The Working Committee is chaired by the Secretary, Department of Public Enterprises (DPE). Its membership comprises key Union Secretaries, including those for Coal, Oil & Gas, Power, and Steel, underscoring the strategic nature of the review.
Other members include a representative from NITI Aayog, the Indian Institute of Corporate Affairs (IICA), and the Joint Secretary (Policy), DIPAM. As Secretary of the Committee Kranti Khobragde, Director, DPE, is assisting the committee in its complex and high-stakes mandate, which is expected to recalibrate the governance and operating structure of India’s public sector undertakings.
It is also learnt that the working committee will also interact with top executives of diverse categories of CPSEs as industry experts.
While the objective of the Ratna statuses (Miniratna, Navratna, and Maharatna) is to delegate greater financial and operational authority to CPSE Boards—such as in capital expenditure, joint ventures, and financial investments—the approval process involves a final check.
It may be underlined that the report of the working committee will be vetted by the Union Cabinet Secretary before the Ministry of Finance makes the final decision on granting the status and approving the new operational framework.
(By Rakesh Ranjan)
