Govt upgrades IRCTC and IRFC to Navratna status from Miniratna-I

With these two additions, the total number of Navratna Central Public Sector Enterprises (CPSEs) has now increased to 26

The Centre on Monday elevated the status of Indian Railway Catering & Tourism Corporation Limited (IRCTC) and Indian Railway Finance Corporation Limited (IRFC) from Miniratna I to Navratna.

 

While announcing this on X (formerly Twitter), the Department of Public Enterprises, under the finance ministry, said with these additions, the total number of Navratna central public sector enterprises (CPSEs) has reached 26.

 

This status will help these two railway CPSEs to invest up to ₹1,000 crore or 15 per cent of their net worth in a single project without requiring prior government approval.

 

Also they gain flexibility to expand operations and explore new business opportunities more efficiently. They will also have greater independence in forming joint ventures and entering into technology or marketing agreements.

 

IRCTC recorded an annual turnover of ₹4,270.2 crore, profit after tax (PAT) of ₹1,111.3 crore and a net worth of ₹3,230 crore in FY24

 

During the financial year, IRFC registered annual turnover of ₹26,644 crore, PAT of ₹6,412 crore and net worth of ₹49,178 crore.

 

There are now 14 Maharatna CPSEs and 26 Navratna CPSEs in India. Last year, Union Finance Minister Nirmala Sitharaman approved the upgradation of four CPSEs — Railtel Corporation of India, Solar Energy Corporation of India, Satluj Jal Vidyut Nigam, and National Hydroelectric Power Corporation — to Navratna status.

 

The criteria for granting Navratna status to CPSEs is that those, which are Miniratna I Schedule ‘A’, must have obtained ‘excellent’ or ‘very good’ memorandum of understanding (MoU) ratings in three of the last five years. Also, they must have a composite score of 60 or more in six selected performance indicators.

 

The government introduced the Navratna scheme in 1997 to identify CPSEs that had comparative advantages and to support them in their drive to become global giants.

 

Under this scheme, the boards of Navratna CPSEs have also been delegated autonomy in the areas of capital expenditure, investment in joint ventures/subsidiaries, mergers and acquisitions and human resource management, among others.

 

The Centre classifies CPSEs into three categories — Maharatna, Navratna, and Miniratna — based on their financial performance and operational capabilities.