SJVN, Solar Energy, NHPC, and RailTel Gain Navratna Status; Shares Surge Up to 5%

The central government has elevated four public sector companies to Navratna status: SJVN, Solar Energy Corporation, NHPC, and RailTel Corporation of India. Discover how this upgraded status impacts the share prices of these companies and understand what it means to be a Navratna company.

Sep 2, 2024, 19:34 IST
All the businesses with Navratna status have more autonomy in their decisions as compared to other government-owned businesses.
All the businesses with Navratna status have more autonomy in their decisions as compared to other government-owned businesses.

The Ministry of Finance has added 4 new companies to the list of Navratna Companies of India. The ministry renewed the list on August 30, upgrading four public-sector enterprises, SJVN, Solar Energy Corporation, NHPC, and RailTel Corporation of India to the status of ‘Navratna’ companies. With this, there are now 25 Navratna CPSEs in India overall.

Of the four companies added, three of them are publicly traded: Railtel, SJVN, and NHPC. The shares of Railtel and SJVN surged over five percent in trade on the first day when the share market opened after this decision, i.e., September 2, while NHPC shares were 4.5 percent higher in early trade.

ALSO READ: How Maharatna,Navaratna and Miniratna Status Granted to CPSEs?

What does it mean to be a ‘Navratna’ Company?

The central government has given the status of Navratna to those government-owned businesses in India that were formerly categorized as "Miniratna" Category I. This decision is based on the criteria of their outstanding market standing and financial performance. 

The Navratna plan was launched in 1997 to identify Central Public Sector Enterprises (CPSEs) that possess notable competitive advantages and facilitate their development into global leaders.

Statement Made by DPE

According to the statement made by the Department of Public Enterprises (DPE), RailTel Corporation of India became the 22nd Navratna CPSE, with an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY24.

Moreover, SECI is now officially recognized as the 23rd Navratna CPSE. The company is overseen by the Ministry of New and Renewable Energy (MNRE). The company declared a net profit of Rs 436 crore and an annual revenue of Rs 13,035 crore in FY24.

Benefits Enjoyed by a Navratna Company

All the businesses with Navratna status have more autonomy in their decisions as compared to other government-owned businesses. This power facilitates quicker decision-making and more operational efficiency. These Navratna companies have the authority to create joint ventures overseas, investigate new markets, and make use of local knowledge.

Navratna enterprises also gain from improved market positioning, increased chances for technical innovation through strategic alliances, and the possibility of mergers and acquisitions, all of which support their growth and increased market share.

Latest List of Navratna Companies

Check the latest list of 25 companies that have been granted the status of Navratna:

No. Company Name Established Year
1 Bharat Electronics Limited (BEL) 1954
2 Container Corporation of India Limited (CONCOR) 1988
3 Engineers India Limited (EIL) 1965
4 Hindustan Aeronautics Limited (HAL) 1940
5 Mahanagar Telephone Nigam Limited (MTNL) 1986
6 National Aluminium Company Limited (NALCO) 1981
7 National Buildings Construction Corporation Limited (NBCC) 1960
8 Neyveli Lignite Corporation Limited (NLC India) 1956
9 NMDC Limited 1958
10 Rashtriya Ispat Nigam Limited (RINL) 1971
11 Shipping Corporation of India Limited (SCI) 1961
12 Rail Vikas Nigam Limited (RVNL) 2003
13 ONGC Videsh Ltd (OVL) 1965
14 Rashtriya Chemicals & Fertilizers Limited (RCF) 1978
15 IRCON International Limited 1976
16 RITES Limited 1974
17 National Fertilizers Limited 1974
18 Central Warehousing Corporation 1957
19 Housing & Urban Development Corporation Limited 1970
20 Indian Renewable Energy Development Agency Limited 1987
21 Mazagon Dock Shipbuilders Limited 1934
22 Railtel Corporation of India Limited 2000
23 Solar Energy Corporation of India (SECI) Ltd. 2011
24 NHPC Limited 1975
25 SJVN Limited

1988

The Navratna status gives these companies more independence in managing their finances and operations, allowing them to grow faster by becoming more flexible, expanding their reach, and focusing on technology. The Ministry of Finance emphasized that the companies' growth will be accelerated by this classification.

ALSO READ: Latest List of Maharatna and Navratna Companies in India 2024

Vidhee Tripathi
Vidhee Tripathi

Content Writer

Vidhee Tripathi completed her PG Diploma degree in Digital Media from Indian Institute of Mass Communication, New Delhi. She is a graduate in Science with chemistry honors from Banaras Hindu University. She has 2 years of experience in various aspects of journalism. She was previously associated with the social media wing of Akashvani. At jagranjosh.com, currently she covers current affairs, national news and international news. She is also associated with the education news section of Jagran Josh.

Certificate: Creative Writing, Problem Solving, Web Content Writing
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