When was the concept of "NAVRATNA" started for public enterprises ?

Question

Accepted Answer

The correct option is 4: In 1997.

The "Navratna" scheme was introduced by the Government of India in 1997 to identify a select group of Public Sector Enterprises (PSEs) that had comparative advantages and the potential to become global giants. The primary purpose was to delegate greater operational and financial autonomy to these companies, allowing them to compete more effectively in the rapidly globalizing economy, particularly following the economic liberalization reforms of 1991. The designation was intended to empower the boards of these companies to take quick decisions on investment, joint ventures, and other strategic issues without needing excessive governmental approval, thereby improving their efficiency and profitability.

The incorrect option is 1: In 1998. This year is incorrect as the Navratna scheme was implemented and announced one year prior, in 1997. While 1998 saw the continuous performance monitoring of these enterprises, the initiation date was earlier.

The incorrect option is 2: In 1996. This date is too early for the Navratna status implementation. The government was still in the process of formulating policies for enhancing the autonomy of high-performing PSEs during this year, leading up to the final notification in 1997.

The incorrect option is 3: In 1991. The year 1991 is significant for the start of major economic liberalization (LPG reforms) and the initiation of disinvestment in India's public sector, but it marks the beginning of the broader reform process, not the specific introduction of the Navratna classification scheme.