The Government introduced the 'Navratna' scheme in ______ to identify and support CPSEs with competitive advantages in their journey to becoming global leaders.
Show answer & explanation
Correct answer: D
Explanation
Navratna Scheme -
The Government of India launched the Navratna Scheme in July 1997. The primary objective of this scheme was to identify public sector enterprises (CPSEs) that had the potential and competitive advantage to become global market leaders.
Objective: To provide these companies with greater financial and operational autonomy to enable them to make informed decisions and compete globally.
Initial Number: Initially, only nine companies were granted this status, leading to the name "Navratna."
Autonomy: Navratna companies have the authority to invest up to ₹1,000 crore or 15% of their net worth without prior government approval.
Classification of Public Sector Enterprises (CPSEs) -
Government companies in India are classified into three main categories based on their financial position and performance: