Source: LM
Context: The Central Government has granted Navratna status to IRCTC and IRFC, making them the 25th and 26th Navratna CPSEs in India.
About Navratna Status:
- What is Navratna Status?
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- Navratna is a prestigious classification for Central Public Sector Enterprises (CPSEs) demonstrating exceptional financial and operational performance.
- It grants greater investment autonomy and decision-making flexibility.
- Who Grants Navratna Status?
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- The Department of Public Enterprises (DPE) under the Ministry of Finance awards Navratna status to eligible CPSEs.
- Eligibility Criteria for Navratna Status:
- To qualify as a Navratna CPSE, a company must:
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- Be a Miniratna-I CPSE with a positive net worth.
- Secure an “Excellent” or “Very Good” MoU rating in three of the last five years.
- Score 60+ points on key financial indicators, including net profit, net worth, and manpower cost.
- Have at least four independent directors on its board.
- Benefits of Navratna Status to Firms:
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- Investment Autonomy: Can invest up to ₹1,000 crore or 15% of net worth without government approval.
- Expansion and Diversification: Freedom to form joint ventures, subsidiaries, and alliances globally.
- Increased Market Credibility: Attracts investors and strategic partnerships, enhancing business growth.
About Indian Railway Catering and Tourism Corporation (IRCTC):
- What is IRCTC?
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- IRCTC is a public sector enterprise providing ticketing, catering, and tourism services for Indian Railways.
- Establishment and Ministry:
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- Established in: 1999
- Ministry: Operates under the Ministry of Railways, Government of India.
- Key Functions:
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- E-Ticketing: Manages online train reservations through its portal and mobile apps.
- Catering Services: Operates onboard catering and manages railway food plazas.
- Tourism Services: Offers rail-based tourism packages, including luxury trains like Maharajas’ Express.
- Rail Neer: Produces and supplies packaged drinking water for railway passengers.
About Indian Railway Finance Corporation (IRFC):
- What is IRFC?
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- IRFC is a public sector undertaking (PSU) responsible for raising financial resources for the expansion and modernization of Indian Railways.
- It secures funding from capital markets, banks, and other financial institutions.
- Establishment and Ministry:
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- Established in: 12 December 1986
- Ministry: Operates under the Ministry of Railways, Government of India.
- Key Functions:
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- Funding Indian Railways: Provides low-cost capital for railway expansion.
- Market Borrowings: Raises funds through bonds, external borrowings, and public offerings.
- Rolling Stock Leasing: Finances the procurement of locomotives, coaches, and wagons.
- Infrastructure Development: Supports the modernization and electrification of railway networks.
