Union Finance Minister Nirmala Sitharaman accorded ‘Navratna’ status to Central Public Sector Undertakings NHPC, SJVN, RailTel and Solar Energy Corporation of India (SECI).

With this, the number of Navratna CPSEs in the country has surged to 25. 

Navratna status provides more financial autonomy to the entities.

NHPC

• NHPC was incorporated on November 7, 1975 as a private limited company under the name ‘National Hydroelectric Power Corporation Ltd’. 

• It was converted to public limited company in April 1986. The name of the company was changed to its present name ‘NHPC Limited’ in 2008.

• It is under administrative control of the Ministry of Power.

• NHPC is a Schedule-A enterprise with 67.40 per cent ownership of the government of India with an authorised share capital of Rs 15,000 crore and an investment base of over Rs 78,803 crore (as on March 31, 2024). 

• NHPC is ranked as a premier organisation in the country for development of hydropower.

• It is an ISO-9001:2015, ISO-14001:2015 and ISO-45001:2018 certified company.

• It is a multi-disciplinary organisation and has acquired sufficient expertise and state-of-the-art technology for investigation, planning, designing and executing large and small size hydropower projects. 

• It has the strength of highly qualified and experienced professionals in design and engineering, geo-technical engineering, construction planning and construction management for building hydroelectric projects. 

• The technical & engineering proficiency and experience of NHPC places it in a leading position in the field of hydropower development in India and neighboring countries.

• NHPC’s total installed capacity is 7,144.20 MW including 1,593 MW in joint ventures, comprising 6971.20 MW from 22 Hydro Power Stations, 123 MW from three solar power projects and 50 MW from a wind power project.

SJVN

• SJVN Limited is a Schedule ‘A’ Central Public Sector Enterprise (CPSE) under administrative control of the Ministry of Power.

• It was incorporated on May 24, 1988 as a joint venture of government of India and government of Himachal Pradesh to plan, promote, develop all forms of power, both renewable as well as non-renewable and all ancillary activities related thereto, in India and abroad.

• It was formerly known as Satluj Jal Vidyut Nigam.

• Beginning with a single project and single state operation (India’s largest 1,500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh), SJVN is currently implementing hydroelectric projects in Himachal Pradesh, Uttarakhand, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram and Madhya Pradesh in India besides neighbouring country Nepal. 

• The company has commissioned 14 projects totaling 2,467 MW of installed capacity.

• Apart from hydropower, SJVN has also ventured into thermal, wind power, solar power, power transmission and power trading.

Solar Energy Corporation of India (SECI)

• Solar Energy Corporation of India (SECI) is a central public sector undertaking (CPSU) under the administrative control of the Ministry of New and Renewable Energy (MNRE), set up on September 20, 2011. 

• The company was set up as an implementing and executing arm of the Jawaharlal Nehru National Solar Mission (JNNSM) for development, promotion and commercialisation of solar energy technologies in the country.

• Through an amendment by the government, the company has been converted into a Section-3 company, in 2015, under the Companies Act, 2013.

• In 2015, the mandate of the company was broadened to cover all segments of renewable energy, pursuant to the approval of the government.

• SECI is engaged in promotion and development of various renewable energy resources, especially solar energy, trading of power, R&D, etc.

• SECI currently owns and operates renewable energy projects with a total capacity of 122.7 MW.

Railtel Corporation of India

• Railtel Corporation of India, a Central Public Sector Enterprise under the Ministry of Railways, is one of the largest neutral telecom infrastructure & ICT solutions & services providers in the country, owning a pan-India optic fiber network covering several towns & cities and rural areas of the country. 

• RailTel was incorporated on September 26, 2000 with the aim of modernising the existing telecom system for train control, operation, and safety and to generate additional revenues by creating nationwide broadband and multimedia network, laying optical fiber cable using the right of way along railway tracks. 

• Presently, the optic fiber network of RailTel covers over 61,000 route kilometers and covers over 6,100 railway stations across India. 

• RailTel has a strategic relationship with the Indian Railways and it undertakes a wide variety of projects including provision of mission critical connectivity services.

• It implements short haul connectivity between stations and long haul connectivity to support various organisations within the Indian Railways. 

• RailTel also provides various passenger services including content on demand services.

• It is also working to transform railway stations into digital hub by providing public wifi at railway stations across the country and over 6,100 stations are live with RailTel’s RailWire WiFi.

What is Maharatna, Navratna and Miniratna status?

Under Articles of Association, the board of directors of Central Public Sector Enterprises (CPSEs) enjoys autonomy in respect of recruitment, promotion and other service conditions of below board level employees. 

The board of directors of a CPSE exercises delegated powers subject to broad policy guidelines issued by the government from time to time. 

The government has granted enhanced powers to the Boards of the profit-making enterprises under various schemes like Maharatna, Navratna and Miniratna.

Maharatna scheme

• The main objective of the Maharatna scheme which was introduced in 2010 is to empower mega CPSEs to expand their operations and emerge as global giants.

• Maharatna CPSEs compared to others are given greater autonomy for flexibility in respect of capital expenditure, formation of strategic alliance, formulation of HR policies, etc.

• The Board of a Maharatna CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the networth of the concerned CPSE, limited to Rs 5,000 crore in one project.

• The board can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances.

Eligibility criteria for grant of Maharatna status

The CPSEs meeting the following eligibility criteria are considered for Maharatna status:

a) Having Navratna status.

b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.

c) An average annual turnover of more than Rs 25,000 crore during the last three years.

d) An average annual net worth of more than Rs 15,000 crore during the last three years.

e) An average annual net profit after tax of more than Rs 5,000 crore during the last three years.

f) Should have significant global presence/international operations.

Maharatna CPSEs

1) Bharat Heavy Electricals Limited

2) Bharat Petroleum Corporation Limited

3) Coal India Limited

4) GAIL India Limited

5) Hindustan Petroleum Corporation Limited

6) Indian Oil Corporation Limited

7) NTPC Limited

8) Oil & Natural Gas Corporation Limited,

9) Power Finance Corporation

10) Power Grid Corporation of India Limited

11) Steel Authority of India Limited

12) Rural Electrification Corporation Limited

13) Oil India Ltd 

Navratna scheme

The government introduced the Navratna scheme in 1997.

Under this scheme, the Boards of Navratna CPSEs have been delegated enhanced powers in the areas of:

i) Capital expenditure

ii) Investment in joint ventures/subsidiaries

iii) Mergers & acquisitions

iv) Human resources management, etc.

Eligibility criteria for grant of Navratna status

The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and have a ‘Composite Score’ of performance to be 60 or above in six identified performance parameters are eligible to be considered for grant of Navratna status. 

The parameters are:

1) Net Profit to Net worth

2) Manpower Cost to total Cost of Production or Cost of Services

3) Profit Before Depreciation, Interest and Tax (PBDIT) to Capital Employed 

4) Profit Before Interest and Tax (PBIT) to Turnover

5) Earning Per Share

6) Inter-Sectoral Performance.

Navratna CPSEs are:

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) National Buildings Construction Corporation Limited

8) Neyveli Lignite Corporation Limited

9) NMDC Limited

10) Rashtriya Ispat Nigam Limited

11) Shipping Corporation of India Limited

12) Rail Vikas Nigam Limited

13) ONGC Videsh Ltd

14) Rashtriya Chemicals & Fertilizers Limited

15) IRCON

16) RITES

17) National Fertilizers Limited

18) Central Warehousing Corporation

19) Housing & Urban Development Corporation Limited

20) Indian Renewable Energy Development Agency Limited

21) Mazagon Dock Shipbuilders Limited 

22) Railtel Corporation of India Limited

23) Solar Energy Corporation of India Limited (SECI)

24) NHPC Limited

25) SJVN Limited.

Miniratna scheme

• In October 1997, the government decided to grant enhanced autonomy and delegation of financial powers to some other profit making companies subject to certain eligibility conditions and guidelines to make them efficient and competitive.

• These companies, called Miniratnas, are in two categories, namely, Category-I and Category-II.

• Category-I CPSEs should have made profit in the last three years continuously, the pre-tax profit should have been Rs 30 crore or more in at least one of the three years and should have a positive net worth.

• Category-II CPSEs should have made profit for the last three years continuously and should have a positive net worth.

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