• The government has approved the upgradation of IRCTC and IRFC to Navratna Central Public Sector Enterprises.

• With this, the total number of Navratna CPSEs in India now stands at 26.

• Indian Railway Catering and Tourism Corporation (IRCTC) is an extended arm of Indian Railways and the only entity in India to provide online railway ticket booking services, and catering services to Railways. 

• It has an annual turnover of Rs 4,270.18 crore, PAT (profit after tax) of Rs 1,111.26 crore and a net worth of Rs 3,229.97 crore for FY 2023-24.

• Indian Railway Finance Corporation (IRFC) secures the Extra Budgetary Resources (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms.

• IRFC is a Ministry of Railways CPSE with an annual turnover of Rs 26,644 crore, PAT of Rs 6,412 crore and a net worth of Rs 49,178 crore for FY 2023-24. 

• The Railway Ministry said that there are 12 CPSEs of Indian Railways out of which seven are listed ones. Now, all seven listed railway PSUs have achieved Navratna status.

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 

14) Hindustan Aeronautics Limited.

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) Mahanagar Telephone Nigam Limited

5) National Aluminium Company Limited

6) National Buildings Construction Corporation Limited

7) Neyveli Lignite Corporation Limited

8) NMDC Limited

9) Rashtriya Ispat Nigam Limited

10) Shipping Corporation of India Limited

11) Rail Vikas Nigam Limited

12) ONGC Videsh Ltd

13) Rashtriya Chemicals & Fertilizers Limited

14) IRCON

15) RITES

16) National Fertilizers Limited

17) Central Warehousing Corporation

18) Housing & Urban Development Corporation Limited

19) Indian Renewable Energy Development Agency Limited

20) Mazagon Dock Shipbuilders Limited 

21) Railtel Corporation of India Limited

22) Solar Energy Corporation of India Limited (SECI)

23) NHPC Limited

24) SJVN Limited.

25) Indian Railway Catering and Tourism Corporation (IRCTC)

26) Indian Railway Finance Corporation (IRFC).

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.

(The author is a trainer for Civil Services aspirants.)