The Department of public Enterprise(DPE) under the Ministry of Finance have been granted Navratna status to two Central Public Sector Enterprises (CPSEs) namely Ircon International Limited (IRCON) and RITES Limited (RITES) under the Ministry of Railways(MoR).
IRCON and RITES Limited:
i.IRCON International Limited is a specialized construction company that covers the entire range of construction activities and services in the infrastructure sector. It is now the 15th company to be granted Navratna status.
ii.RITES Limited which is a multidisciplinary engineering and consultancy organization is the 16th Navratna amongst CPSEs.
- RITES Limited is entering its 50th year of incorporation (2024).
- It is also the first Public sector undertakings (PSU) of Railway followed by IRCON at second.
- Both these companies were listed previously on Miniratna I CPSEs.
About Navratna Scheme:
i.The Navratna scheme was launched in 1997 to identify and support CPSEs with comparative advantages in becoming global giants.
ii.The boards of Navratna CPSEs have been granted delegated powers in areas such as capital expenditure, investment in joint ventures (JVs)/subsidiaries, and human resources management.
iii.These CPSEs are given greater autonomy and flexibility in their operations, in order to improve their performance and competitiveness.
i.The criteria for conferring Navratna status entail that Miniratna Category – I and Schedule ‘A’ CPSEs must have achieved an ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in at least three of the last five years.
ii.Additionally, they should attain a composite score of 60 or higher in six specific performance parameters, which include:
- Net profit to net worth.
- Manpower cost to total cost of production/services.
- Profit before depreciation, interest, and taxes to capital employed.
- Profit before interest and taxes to turnover.
- Earnings per share.
- Inter-sectoral performance.
iii..The CPSE should have 4 independent Board Directors.
iv.Granting the navratna status enhances financial autonomy to invest up to 1000 crores without any approval from the central government.
- To establish financial joint ventures and wholly owned subsidiaries in India or abroad with the stipulation that the equity investment of the CPSE should be limited to the following:-
- Rs 1000 crore in any one project
- 15 % of the net worth of the CPSE in one project
- 30 % of the net worth of the CPSE in all joint ventures/subsidiaries put together.
List of Total Navratna Companies 2023:
|1||Bharat Electronics Limited|
|2||Rashtriya Chemicals & Fertilizers Limited|
|3||Engineers India Limited|
|4||Rashtriya Ispat Nigam Limited|
|5||Mahanagar Telephone Nigam Limited|
|6||National Aluminium Company Limited|
|7||Hindustan Aeronautics Limited|
|8||Neyveli Lignite Corporation Limited|
|10||Container Corporation of India Limited|
|11||Shipping Corporation of India Limited|
|12||National Buildings Construction Corporation(NBCC) Limited|
|13||ONGC Videsh Limited|
|14||Rail Vikas Nigam Limited|
|15||Ircon International Limited|
About Ircon International Limited (IRCON):
Chairman & Managing Director(CMD – Add.charge) – Brijesh Kumar Gupta
Headquarters – New Delhi, Delhi
Established in – 1976
About RITES Limited (RITES):
Chairman & Managing Director(MD) – Rahul Mithal
Headquarters – Gurugram, Haryana
Established in – 1974