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.
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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
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