Navratna Status

• The Central Government has recently conferred Navratna status upon IRCTC and IRFC, elevating them to the ranks of India’s 25th and 26th Navratna CPSEs.
• Navratna Status –
• Definition: A prestigious classification for Central Public Sector Enterprises (CPSEs) recognizing exceptional financial and operational performance.
• Authority: Granted by the Department of Public Enterprises (DPE) under the Ministry of Finance.
• Benefits: Provides greater investment autonomy and decision-making flexibility to eligible CPSEs.
• Eligibility Criteria for Navratna Status:

1. A CPSE must be a Miniratna-I company with a positive net worth.
2. Have an “Excellent” or “Very Good” MoU rating in three of the last five years.
3. Score 60+ points on financial indicators (net profit, net worth, manpower cost).
4. Have at least four independent directors on its board.

• Benefits of Navratna Status:

1. Investment Autonomy: Can invest up to ₹1,000 crore or 15% of net worth without government approval.
2. Expansion & Diversification: Can form joint ventures, subsidiaries, and global alliances.
3. Market Credibility: Attracts investors and strategic partnerships, boosting growth.

• Indian Railway Catering and Tourism Corporation (IRCTC)
• Definition: A public sector enterprise providing ticketing, catering, and tourism services for Indian Railways.
• Established: 1999
• Operates under: Ministry of Railways, Government of India
• Key Functions:

1. E-Ticketing: Manages online train reservations via portal & mobile apps.
2. Catering Services: Handles onboard catering & manages railway food plazas.
3. Tourism Services: Offers rail-based tourism packages, including luxury trains (Maharajas’ Express).
4. Rail Neer: Produces & supplies packaged drinking water for railway passengers.

• Indian Railway Finance Corporation (IRFC)
• Definition: A public sector undertaking (PSU) responsible for raising financial resources for Indian Railways’ expansion & modernization.
• Established: 12 December 1986
• Operates under: Ministry of Railways, Government of India
• Key Functions:

1. Funding Indian Railways: Provides low-cost capital for railway expansion.
2. Market Borrowings: Raises funds via bonds, external borrowings, & public offerings.
3. Rolling Stock Leasing: Finances procurement of locomotives, coaches, & wagons.

Infrastructure Development: Supports modernization & electrification of railway networks.