Navratna Status

Source: LM

Context: The Central Government has granted Navratna status to IRCTC and IRFC, making them the 25th and 26th Navratna CPSEs in India.

About Navratna Status:

• What is Navratna Status?

• Navratna is a prestigious classification for Central Public Sector Enterprises (CPSEs) demonstrating exceptional financial and operational performance. It grants greater investment autonomy and decision-making flexibility.

• Navratna is a prestigious classification for Central Public Sector Enterprises (CPSEs) demonstrating exceptional financial and operational performance.

• It grants greater investment autonomy and decision-making flexibility.

• Who Grants Navratna Status?

• The Department of Public Enterprises (DPE) under the Ministry of Finance awards Navratna status to eligible CPSEs.

• Eligibility Criteria for Navratna Status: To qualify as a Navratna CPSE, a company must:

• To qualify as a Navratna CPSE, a company must:

• Be a Miniratna-I CPSE with a positive net worth. Secure an “Excellent” or “Very Good” MoU rating in three of the last five years. Score 60+ points on key financial indicators, including net profit, net worth, and manpower cost. Have at least four independent directors on its board.

• Be a Miniratna-I CPSE with a positive net worth.

• Secure an “Excellent” or “Very Good” MoU rating in three of the last five years.

• Score 60+ points on key financial indicators, including net profit, net worth, and manpower cost.

• Have at least four independent directors on its board.

• Benefits of Navratna Status to Firms:

• Investment Autonomy: Can invest up to ₹1,000 crore or 15% of net worth without government approval. Expansion and Diversification: Freedom to form joint ventures, subsidiaries, and alliances globally. Increased Market Credibility: Attracts investors and strategic partnerships, enhancing business growth.

• Investment Autonomy: Can invest up to ₹1,000 crore or 15% of net worth without government approval.

• Expansion and Diversification: Freedom to form joint ventures, subsidiaries, and alliances globally.

• Increased Market Credibility: Attracts investors and strategic partnerships, enhancing business growth.

About Indian Railway Catering and Tourism Corporation (IRCTC):

• What is IRCTC?

• IRCTC is a public sector enterprise providing ticketing, catering, and tourism services for Indian Railways.

• Establishment and Ministry:

• Established in: 1999 Ministry: Operates under the Ministry of Railways, Government of India.

• Established in: 1999

• Ministry: Operates under the Ministry of Railways, Government of India.

• Key Functions:

• E-Ticketing: Manages online train reservations through its portal and mobile apps. Catering Services: Operates onboard catering and manages railway food plazas. Tourism Services: Offers rail-based tourism packages, including luxury trains like Maharajas’ Express. Rail Neer: Produces and supplies packaged drinking water for railway passengers.

• E-Ticketing: Manages online train reservations through its portal and mobile apps.

• Catering Services: Operates onboard catering and manages railway food plazas.

• Tourism Services: Offers rail-based tourism packages, including luxury trains like Maharajas’ Express.

• Rail Neer: Produces and supplies packaged drinking water for railway passengers.

About Indian Railway Finance Corporation (IRFC):

• What is IRFC?

• IRFC is a public sector undertaking (PSU) responsible for raising financial resources for the expansion and modernization of Indian Railways. It secures funding from capital markets, banks, and other financial institutions.

• IRFC is a public sector undertaking (PSU) responsible for raising financial resources for the expansion and modernization of Indian Railways.

• It secures funding from capital markets, banks, and other financial institutions.

• Establishment and Ministry:

• Established in: 12 December 1986 Ministry: Operates under the Ministry of Railways, Government of India.

• Established in: 12 December 1986

• Ministry: Operates under the Ministry of Railways, Government of India.

• Key Functions:

• Funding Indian Railways: Provides low-cost capital for railway expansion. Market Borrowings: Raises funds through bonds, external borrowings, and public offerings. Rolling Stock Leasing: Finances the procurement of locomotives, coaches, and wagons. Infrastructure Development: Supports the modernization and electrification of railway networks.

• Funding Indian Railways: Provides low-cost capital for railway expansion.

• Market Borrowings: Raises funds through bonds, external borrowings, and public offerings.

• Rolling Stock Leasing: Finances the procurement of locomotives, coaches, and wagons.

• Infrastructure Development: Supports the modernization and electrification of railway networks.