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Source: The post is based on the article “Indian Railways’ PSUs, RITES Ltd and IRCON granted Navratna status” published in “PIB” on 14th October 2023
What is the News?
Ircon International Limited (IRCON) and RITES Ltd(RITES) have been announced as 15th and 16th Navratna respectively.
These are both Central Public Sector Enterprise (CPSE) under the Ministry of Railways.
What is Navratna Status?
The Government of India had introduced the ‘Navratna’ status in 1997.
Aim: To identify Central Public Sector Enterprises(CPSEs) that had comparative advantages and to support them in their drive to become global giants.
Criteria: CPSEs fulfilling the following criteria are eligible to be considered for grant of Navaratna status:
– Having Schedule ‘A’ and Miniratna Category-1 status.
– Having obtained an ‘excellent’ or ‘very good’ MOU rating in three of the last five years.
– Having a composite score of 60 or above in six selected performance indicators such as Net Profit to Net worth, Manpower Cost to total Cost of Production, Earning Per Share among others.
Benefits of Getting Navratna Status:
– Financial independence to invest up to ₹1,000 crore without seeking approval from the central government.
– Can invest up to 15% of their net worth on a single project or 30% of their net worth in a given year, subject to a cap of ₹1,000 crore.
Navratna CPSEs: 1) Bharat Electronics Limited 2) Container Corporation of India Limited 3) Engineers India Limited 4) Hindustan Aeronautics Limited 5) Mahanagar Telephone Nigam Limited 6) National Aluminium Company Limited 7) NBCC (India) Limited 8) NMDC Limited 9) NLC India Limited 10) Oil India Limited 11) Power Finance Corporation Limited 12) Rashtriya Ispat Nigam Limited 13) Rural Electrification Corporation Limited 14) Shipping Corporation of India Limited 15) Ircon International Limited (IRCON) and 16) RITES Ltd(RITES).
