State-run Bharat Heavy Electricals and Steel Authority of India have been placed under a one-year review period by the Centre after failing to meet the profitability criterion required for Maharatna status, according to a report by Economic Times.
If their financial performance does not improve during the review period, the two public sector undertakings could be downgraded to Navratna status, the report added.
BHEL and SAIL are the only two among India's 14 Maharatna companies that do not meet the requirement of maintaining an average annual profit after tax of more than ₹5,000 crore over the preceding three years.
1 June 2026
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To qualify as a Maharatna, a central public sector enterprise must also have an average annual turnover exceeding ₹25,000 crore, net worth above ₹15,000 crore over the previous three years, and a significant international presence.
A downgrade would reduce the companies' financial autonomy. Maharatna firms can make equity investments of up to ₹5,000 crore without prior government approval, against a limit of ₹1,000 crore for Navratna companies.
The recommendation was made by a committee headed by Cabinet Secretary TV Somanathan as part of a broader review of central public sector enterprises. The panel recommended stricter financial and governance standards, including provisions for withdrawing Ratna status from companies failing to meet prescribed criteria. The ministries overseeing BHEL and SAIL have been asked to submit turnaround plans.
The review also prompted a wider examination of Maharatna eligibility criteria. NITI Aayog representatives told the committee that the turnover, net worth, and profitability thresholds were fixed in 2010 and have not been revised since. The committee has asked the Department of Public Enterprises to revisit these criteria by indexing them to 2025 prices, after which all central public sector enterprises may be reassessed.
The Steel Ministry informed the committee that SAIL's average annual turnover exceeded ₹1 lakh crore over the last four years, with average net worth at ₹53,976 crore, though the company last met the three-year average PAT threshold in 2022–23.
In BHEL's case, NITI Aayog flagged human resource policies as a major constraint on growth and called for a comprehensive review. The Ministry of Heavy Industries told the panel that a plan to improve BHEL's financial performance was already in place.
