Railway
Coal India Limited (CIL) holds which status among central public sector enterprises?
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Answer: Option B — Maharatna
Detailed Solution
Coal India Limited (CIL) is a state-owned coal mining company under the Ministry of Coal, with its headquarters in Kolkata. It was set up in November 1975 as a holding company after the coal industry was nationalised in two phases, in 1971-72 and 1973. It is the largest coal-producing company in the world and produces most of India's coal. It works through subsidiaries such as Bharat Coking Coal (BCCL), Central Coalfields (CCL), Eastern Coalfields (ECL), Mahanadi Coalfields (MCL), Northern Coalfields, South Eastern Coalfields (SECL) and Western Coalfields, along with the Central Mine Planning and Design Institute (CMPDI). CIL was granted Maharatna status in 2011.
The Government of India classifies its profit-making central public sector enterprises (CPSEs) into three categories to give them more financial and operational autonomy:
Maharatna (introduced in 2009-10): the highest category. A CPSE must already be a Navratna, be listed on a stock exchange, and have an average annual turnover of more than ₹25,000 crore, average net worth of more than ₹15,000 crore and average net profit of more than ₹5,000 crore over the last three years, with a significant global presence. The Board of a Maharatna can invest up to ₹5,000 crore in a single project without government approval.
Navratna (introduced in 1997): the CPSE must be a Miniratna Category I and Schedule A company, with high scores on performance criteria. A Navratna can invest up to ₹1,000 crore without government approval.
Miniratna (introduced in 1997): Category I (profit in the last three years and net profit of ₹30 crore or more in at least one year) and Category II (profit in the last three years and positive net worth).
There are 14 Maharatnas, including ONGC, NTPC, SAIL, BHEL, Indian Oil, Coal India, GAIL, BPCL, Power Grid, HPCL, Power Finance Corporation, REC, Oil India and Hindustan Aeronautics (HAL, upgraded in 2024).
Why not the other options?
Navratna is the second-highest category (e.g. Bharat Electronics, NALCO).
Miniratna Category I and II are lower categories (e.g. Airports Authority of India).
Quick tip
Remember: CPSE status = Maharatna (2009-10, ₹5,000 crore investment power) > Navratna (1997, ₹1,000 crore) > Miniratna; Coal India = Maharatna (2011), Kolkata, largest coal producer in the world.
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PSUs, Navratnas & Maharatnas — Preparation
This question tests your understanding of PSUs, Navratnas & Maharatnas, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers public sector undertakings in India, the Maharatna, Navratna and Miniratna categories and the criteria for each, major PSUs and their headquarters, and disinvestment policy. Questions often ask which companies hold Maharatna or Navratna status, what the criteria are, and where a PSU is headquartered. The list of companies with each status changes when new companies are upgraded, so check the latest list from the Department of Public Enterprises before your exam. Practise the PSUs, Navratnas and Maharatnas questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.