Ircon International Limited bags order worth 14.89 million dollars in Sri Lanka.

• Ircon International Limited has bagged an order in Sri Lanka worth 14.89 million dollars on competitive bidding basis.
• The Miniratna Public sector enterprise was awarded the work for procurement of Design, Installation, Testing, Commissioning and Certifying of Signalling and Telecommunication system by Sri Lanka Railways.
• The project will be carried out under Indian Line of Credit equivalent to approximately122 Crore Rupees or 14.89 million dollars.
• The contract period will be of 24 months from the date of signing of the Agreement.
• IRCON had previously completed 2 other major railway development projects in the island nation.

About Indian Railway Construction Limited (IRCON):

• It is a wholly owned subsidiary of the Indian Railways , Ministry of Railways , Government of India. It is an engineering & construction corporation, specialized in transport infrastructure.
• The subsidiary was established in 1976, by the Indian Railways under the Indian Companies Act 1956. IRCON was registered as the Indian Railway Construction International Limited, a wholly owned entity of the Indian Railways.
• Its primary charter was the construction of railway projects in India and abroad. Ircon has since diversified into other transport and infrastructure segments and with its expanded scope of operations around the world, the name was changed to Indian Railway International Ltd. in October 1995.
• The Ircon is well known for undertaking challenging infrastructure projects, especially in difficult terrains in India and abroad. Ircon has completed over 1650 major infrastructure projects in India and over 900 major projects across the globe in more than 31 countries.

What are Miniratnas?

• Miniratna CPSEs are those which have made profits in the last continuous three years and have positive net worth, which can be considered to be eligible criteria for granting Miniratna status.
• At present, there are 74 Miniratnas in total. The Miniratnas are divided into two categories – I and II.

Types of Miniratnas

• The Miniratnas can be divided into two categories I and II.
• Category – I: It includes the PSUs that have made profits in the previous three years or have generated a profit of Rs 30 crore or more in one of the preceding three years.
• Category – II: It includes the PSUs that have made profits in the preceding three years and have a positive net worth in all three preceding years.

Significance of Granting a Company Miniratna Status

• For a miniratna belonging to category I a financial autonomy of up to Rs. 500 crore or equal to their net worth, whichever is lower is granted.
• A category II miniratna financial autonomy of up to Rs. 300 crore or up to 50% of their net worth, whichever is lower is granted.