IRCTC and IRFC get Navratna status
Indian Railway Catering and Tourism Corporation Limited (IRCTC) has become the 25th and Indian Railway Finance Corporation Limited (IRFC) has become the 26th Navratna company. The government on Monday (March 3) upgraded both these companies to Navratna Central Public Sector Enterprises.
With the Navratna status, these two railway sector companies will get more financial autonomy. Now these companies will be able to invest up to Rs 1,000 crore without government approval. This will accelerate their decision-making ability.
Mazgaon Dock got ‘Navratna’ status in July 2024
Earlier in July 2024, Mazgaon Dock Shipbuilders was added to the group of Navratna companies. At the same time, in September, Satluj Jal Vidyut Nigam (SJVN), National Hydroelectric Power Corporation (NHPC), Solar Energy Corporation and Railtel Corporation got ‘Navratna’ status.
Government companies are categorized in three groups
The Government of India categorizes companies in three groups: Maharatna, Navratna and Miniratna. The government gives Navratna and Maharatna status to some Public Sector Enterprises (PSEs) on the basis of their financial performance, management and national importance.
Maharatna: Only Navratna companies get Maharatna status on the basis of upgradation. For this, the average turnover of the last three years should be more than Rs 25 thousand crore and the average profit should be Rs 2500 crore. It is also necessary for these companies to have global presence.
Navratna: Only Miniratna companies get Navratna status on the basis of upgradation. The net worth of these companies should be positive. The Memorandum of Understanding should have “Excellent” or “Very Good” rating in three out of the last five years. There should be at least 60 points on performance indicators.
Miniratna: These companies are considered smaller than Navratna and Maharatna companies. The criteria to be classified as a Miniratna are determined by the Department of Public Enterprises (DPE) in India.
