Industry & Trade Industries | 8 Maharatna companies in India
Industry & Trade Industries
Industry :
The Government of India adopted the ‘First Industrial Policy’ on April 6, 1948.
The first industrial policy was prepared under the chairmanship of the then Union Industries Minister Shyama Prasad Mukherjee.
The importance of both private and public sectors was accepted in the first industrial policy.
The Government of India adopted the ‘New Industrial Policy’ on 24 July 1991. The Government of India announced a ‘National Manufacturing Policy’ on 14 November
Competition Commission of India (CCI – Competition Commission of India):
Establishment = October 14, 2003
Headquarters = New Delhi
Present Chairman = Ashok Kumar Gupta
The main function of this commission is to promote competition in the market by eliminating obstructive activities in competition and at the same time its main function is to protect the rights of consumers.
IDBI Industrial Development Bank of India:
Establishment – July 1, 1964
Headquarters – Mumbai Maharashtra
MD & CEO -Rakesh Sharma
It leads the entire industrial system of India.
IDBI is the largest institution providing financial assistance to heavy industries in India.
In 2004, IDBI was given the status of Commercial Bank.
Small Industries Development Bank of India (SIDBI – Small Industries Development Bank of India):
Founded – April 2, 1990
Headquarters – Lucknow (Uttar Pradesh)
CEO = Mohamad Mustafa
SIDB is the largest organization providing financial assistance to Small Scale Industries in India.
Small Scale Industries are those with an investment of maximum Rs. 5 crores.
Abid Hussain Committee is concerned with improvement in Small Scale Industries.
Cottage Industries are Industries in which maximum investment of 25 lakh rupees. Special attention was paid to the cottage industries in the 1977 Industrial Policy.
Textile is the second largest employment generating industry in India after Agriculture.
Industrial Finance Corporation of India (IFCI – Industrial Finance Corporation of India):
Establishment = July 1, 1948
Headquarters = New Delhi
It is the first such Development Bank in India, established by an Act of Parliament.
It provides medium and long-term loans to industries.
Finance Corporation can be divided into three categories
(i) Maharatna Companies
(ii) Navratna Companies
(ii) Miniratna companies.
Maharatna Scheme:
The Maharatna Scheme was launched by the Government of India on December 21, 2009. Any company is granted Maharatna status when it can fulfil the following conditions
- That company has got Navratna status.
- It last 3 years money transaction should have been Rs 25000 crores.
- Company has made a profit of Rs 5000 crore in the last 3 years.
- It could invest Rs 5000 crore on his own.
- The company should have a global presence.
- That company must be listed on the Indian stock market.
Currently there are 8 Maharatna companies in India.
- NTPC – National Thermal Power Corporation
- ONGC – Oil & Natural Gas Corporation
- IOC – Indian Oil Corporation
- SAIL – Steel Authority of India Ltd.
- CIL – Coal India Ltd.
- GAIL – Gas Authority of India Ltd.
- BHEL – Bharat Heavy Electrical Ltd.
- BPCL – Bharat Petroleum Corporation Ltd.
Navratna scheme
The Navratna scheme was launched in July 1997 by the Government of India. In 1997, the Government of India named Navratna as well-performing public enterprises.
These were Navratna companies – IOC, ONGC BPCL, HPCL, BHEL, SAIL, NTPC, IPCL & VSNL.
The status of Navratna is given to any company when it fulfills the following conditions –
- That company has the status of Miniratna Company.
- It could invest Rs 1000 crore on his own.
- It has earned a profit of Rs 1000 crore in the last 3 years.
Industries & Trade industries
Currently there are 16 Navratna companies in India:
- Hindustan Petroleum Corporation Limited (HPCL)
- All India Limited (OIL)
- Mahanagar Telephone Nigam Limited (MTNL)
- Nauvahar Corporation of India Limited (SCIL)
- National Steel Corporation Limited (RINL)
- Bharat Electronics Limited (BEL)
- Power Finance Corporation Limited (PFCL)
- Hindustan Aeronautics Limited (HAL)
- National Mineral Development Corporation Limited (NMDCL)
- Rural Electrification Corporation Limited (RECL)
- Power Grid Corporation of India Limited (PGCIL)
- National Aluminum Company Limited (NALCO)
- Neyveli Lignite Corporation Limited, (NLCL)
- Engineering India Limited (EIL)
- National Building Construction Corporation Limited (NBCC)
- CONCOR – Container Corporation of India
Miniratna Scheme:
The Mini Ratna scheme was launched by the Government of India on 3 October 1997. In this plan, the government had decided to give more autonomy to some companies and increase their rights.
These were all profit-making companies. Autonomy means allowing Public Enterprises to operate without external interference.
Currently there are 74 Miniratna companies in India.
The Mini Ratna companies are divided into two categories.
(a) Class-I (b) Class-II
Public companies whose profits have been more than Rs 30 crore in the last 3 years have been given class-I status.
Public companies whose profits have been less than Rs 30 crore in the last 3 years are placed in class-II. Any company is given the status of Miniratna company if it can fulfill the following conditions
- The company has been making profits for 3 consecutive years and has a positive network.
- He should not be a defaulter in repayment of company loans, interest etc.
- The company should not depend on the government for budgetary support.
Note: The number of Maharatna, Navratna and Miniratna companies may decrease or increase according to the government announcement.
FERA – Foreign Exchange Regulation Act:
The Government of India passed FERA in 1947.
The purpose of this law was to regulate companies controlled by foreigners in India.
The FERA was first amended in 1973.
Under this law, Foreign Exchange deals were forbidden completely and NRIs (Non – Resident Indian) were not allowed to do any business dealings in India under this law.
FEMA -Foreign Exchange Management Act:
FERA was abolished in 1998 and a new law was named FEMA.
FEMA was implemented on June 1, 2000.
The main objective of FEMA was to simplify the law relating to foreign exchange, so as to facilitate Foreign Trade and Payment.
Trade: Import – Export or Transaction of Goods and Services is called trade.
India’s maximum trade is with China.
Some of the major trading partner Countries of India are as follows
- China 2. USA 3. UAE 4. Saudi Arabia
The names of the top 4 Importing Countries of India are as follows.
- China 2. Saudi Arabia 3. UAE 4. Switzerland
The names of the top Exporting Countries of India are as follows.
- USA 2. UAE 3. Hong Kong 4. China
The most imported goods to India:
- Crude Oil 2. Gold Silver 3. Electric Goods
India’s Most Exported Items:
- Petroleum Products 2. Gems & Jewellery 3. Pharma Products
India’s Top Importing Crude Oil
- Saudi Arabia 2. Iraq 3. Nigeria 4. Venezuela
Export Import Bank of India (EXIM Bank):
EXIM Bank – Export Import Bank of India
Founded = January 1, 1982
Headquarters – Mumbai (Maharashtra)
Black Market: In this hoarder raise the price of the commodity by showing a false decrease of any commodity in the market, in order to make maximum profit, then such market is called Black market.
Venture Capital: Capital used by Investors and Companies in the market in Trading Activities is called risk capital.
Inclusive Growth: Development in which there is complete development of every part of the society.
Trickle Down Theory: In any country, it is called the ‘drip theory’ to extend all the schemes of benefit to the lower layers of the society.
Most Favoured Nation: When any country gives some special facilities or exemptions related to the import-export of another country, the country which enjoys such facilities is called a ‘Very Favoured Nation’.
Embargo: When any one country or more than one country stops its trade with a particular country, it is called prohibition / embargo.
ZNA (Zero Net Aid): When a country’s Economy becomes self-sufficient and does not require any Foreign Financial Assistance, Economy of such Country is called Zero Net Aid.
Balance of Payment: The statement of transactions of any country with other countries of the world in a financial year is called payment balance.
Gold Value (Gold Standard): When the value of a country’s currency is measured in (Gold), it is called the Gold Value or Gold Standard.
Primary Gold: Only 24 carat pure gold is called Primary Gold. Pure gold is made of 24 carats.
Hallmark: Mark used to prove the quality of things made of gold.
It started in 1986.
The bullion market is related to gold.
The jewellery consists of 22 carat gold and 2 carat copper.
Copper is added to Gold jewellery to strengthen pure gold.
Agmark: It is applied to certify the quality of the products used in Agriculture.
It started in 1986.
The Central Agmark Laboratory is in Nagpur (Maharashtra).
Eco mark: It started in 1991.
It is applied to products that have little impact on the Ecosystem of the environment.
ISI Mark: It has been in effect since 1955 and is applied on all items of Good Quality.
ISI Mark is issued by an organization called ISI (Indian Standard Institute).
The new name of ISI is BIS (Bureau of Indian Standards).
BIS was established on 23 December 1986.
It is headquartered in New Delhi and also has 5 Regional Offices
Delhi, Mumbai, Calcutta, Chennai, Chandigarh.
industry trade industries
