The Solar Energy Corporation of India Ltd (SECI), a state-owned enterprise, has recently attained the Miniratna Category-I status. The Miniratna status is granted to Central Public Sector Enterprises (CPSEs) by the government of India on the basis of certain criteria. The SECI has been granted the status as it fulfills the criteria for Miniratna Category-I status, which requires the CPSE to have made a pre-tax profit of Rs. 30 crores or more in at least one of the last three years, have a positive net worth, and not have defaulted in the repayment of loans or interest payment on any loans due to the government.

About Miniratna Status

The Miniratna status was granted by the government in October 1997 to some profit-making organizations to provide them with certain autonomy and financial powers. The status is granted based on specific criteria laid down by the government. The criteria for Miniratna Category-I status includes making a profit in the last three years continuously, having a pre-tax profit of Rs. 30 crores or more in at least one of the last three years, and having a positive net worth.

Additionally, the CPSE should not have defaulted on the repayment of loans or interest payment on any loans due to the government and should not depend on budgetary support or government guarantees. CPSEs fulfilling these criteria are eligible to be considered for the grant of Miniratna status.

About SECI

The Solar Energy Corporation of India (SECI) was established on 20th September 2011, under the administrative control of the Ministry of New and Renewable Energy (MNRE). The SECI was set up to facilitate the implementation of the National Solar Mission (NSM) and is the only CPSE dedicated to the renewable energy sector. The mandate of the company has been broadened to cover the entire renewable energy domain through the amendments under the Companies Act, 2013. The headquarters of SECI are located in New Delhi.

Significance of Miniratna Status

The grant of Miniratna status is significant for SECI as it provides the enterprise with several benefits. Some of these benefits are:

Autonomy: The grant of Miniratna status provides CPSEs with a higher degree of autonomy, which allows them to make certain decisions independently.

Financial Powers: CPSEs with Miniratna status are granted financial powers, which allows them to make certain financial decisions independently without having to seek approval from the government.

Flexibility: CPSEs with Miniratna status are granted more flexibility in decision-making, which allows them to respond to changing market conditions more effectively.

Competitiveness: The grant of Miniratna status is an indicator of the enterprise’s financial strength, profitability, and good governance practices, which enhances its competitiveness.

Why In News

The Solar Energy Corporation of India Ltd (SECI), a state-owned enterprise, has recently been granted the prestigious Miniratna Category-I status, which is a significant achievement for the company. This status provides SECI with greater autonomy, financial powers, and enhances its competitiveness in the renewable energy sector.

MCQs about Significance of Miniratna Status for SECI

  1. What is the significance of the Miniratna Category-I status granted to SECI?
    A. It provides greater autonomy and financial powers to the company.
    B. It enhances the competitiveness of the company in the renewable energy sector.
    C. Both A and B
    D. None of the above
    Correct Answer: C. Both A and B
    Explanation: The Miniratna Category-I status provides SECI with greater autonomy and financial powers, which allows the company to function more efficiently and take timely decisions. It also enhances the competitiveness of the company in the renewable energy sector.
  2. What is the criteria laid down by the government for grant of Miniratna status to CPSEs?
    A. The CPSEs should have made profit in the last three years continuously.
    B. The pre-tax profit of the CPSEs should be Rs.30 crores or more in at least one of the three years.
    C. The CPSEs should have a positive net worth.
    D. All of the above.
    Correct Answer: D. All of the above.
    Explanation: The criteria laid down by the government for grant of Miniratna status to CPSEs include the CPSEs having made profit in the last three years continuously, the pre-tax profit of the CPSEs being Rs.30 crores or more in at least one of the three years, and the CPSEs having a positive net worth.
  3. Which ministry is responsible for the administrative control of SECI?
    A. Ministry of New and Renewable Energy
    B. Ministry of Power
    C. Ministry of Finance
    D. Ministry of Coal
    Correct Answer: A. Ministry of New and Renewable Energy
    Explanation: SECI is under the administrative control of the Ministry of New and Renewable Energy, which was set up on 20th September 2011 to facilitate the implementation of the National Solar Mission.
  4. Which amendment under the Companies Act, 2013 has broadened the mandate of SECI?
    A. Amendment in 2014
    B. Amendment in 2015
    C. Amendment in 2016
    D. Amendment in 2017
    Correct Answer: C. Amendment in 2016
    Explanation: Through the amendments under the Companies Act, 2013, the mandate of SECI has been broadened to cover the entire renewable energy domain. The relevant amendment was made in 2016.

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