The government has given Navratna status to 4 government companies. SJVN, SECI, NHPC and Railtel Corp have now been included in the list of Navratna companies. The number of Navratna companies has now increased to 25. Actually, getting Navratna status gives more financial and operational exemptions. Under this, there is exemption to invest up to Rs 1,000 crore or 15% of the net worth without the permission of the government. Navratna companies can also form joint ventures abroad.
- Railtel Corporation: The 22nd Navratna, with a turnover of ₹2,622 crore and a net profit of ₹246 crore for FY24.
- Solar Energy Corporation: The 23rd Navratna, reporting an annual turnover of ₹13,035 crore and a net profit of ₹436 crore for FY24.
- NHPC: The 24th Navratna, with an annual turnover of ₹8,405 crore and a net profit of ₹3,744 crore for FY24.
- SJVN: The 25th Navratna, posting an annual turnover of ₹2,833 crore and a net profit of ₹908 crore for FY24.
Benefits of getting Navratna status
- Power to execute significant investments up to ₹1,000 crore without requiring approval from the central authority
- Permission to allocate up to 30% of its net worth per annum, but it should be less than ₹1,000 crore
- Option to participate in joint ventures, form partnerships and set up foreign subsidiaries
- Power to its board of directors to approve mergers and acquisitions in India and abroad
- It will need approval from the Cabinet Committee on Economic Affairs to invest abroad
- Maharatna, Navaratna and Miniratna
Central Public Sector Enterprises (CPSEs) are classified into three categories based on their profit and net worth –
- Maharatna
- Navaratna
- Miniratna
Miniratnas are classified into Miniratna Category-I and Miniratna Category-II.
Criteria for getting Navratna status
- Already having Miniratna Category-I status.
- Must have received very good or excellent rating under MoU system in three out of the last five years.
Must have scored 60 points or more in the following six performance parameters –
- Earning per share – 10 points
- Net capital and net profit – 25 points
- Cost of manpower in relation to total cost of production – 15 points
- Profit before interest and taxes on business – 15 points
- Profit before depreciation, interest and taxes for capital employed – 15 points
- Inter-sectoral performance – 20 points