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

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

By Connect Gujarat Desk 03 Mar 2025 in Business

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

The Union government on Monday elevated the status of Indian Railway Catering and Tourism Corporation Limited (IRCTC) and Indian Railway Finance Corporation Limited (IRFC) from Miniratna-I to Navratna status, the Department of Public Enterprises under the finance ministry announced via posts on the social media platform X.

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

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

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

IRCTC has an annual turnover of Rs 4,270.2 crore, a profit after tax (PAT) of Rs 1,111.3 crore, and a net worth of Rs 3,230 crore for FY24, while IRFC has an annual turnover of Rs 26,644 crore, a PAT of Rs 6,412 crore, and a net worth of Rs 49,178 crore for FY24.

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 require that Miniratna-I, Schedule ‘A’ CPSEs must have obtained ‘excellent’ or ‘very good’ memorandum of understanding (MoU) ratings in three of the last five years and must have a composite score of 60 or above in six selected performance indicators to be eligible.

The government introduced the Navratna scheme in 1997 to identify CPSEs with comparative advantages and support their growth into global giants.

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

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

Companies that meet specific financial and performance benchmarks are granted Navratna status, providing them with greater autonomy in investment and expansion decisions.

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