The Department of Public Enterprises (DPE) of the Ministry of Finance approved on March 3 the upgradation of IRCTC and IRFC as the country’s 25th and 26th Navratna companies. This means that all seven listed Central Public Sector Enterprises (CPSEs) of the Indian Railways have now achieved Navratna status, out of the total 12 CPSEs under Indian Railways.
- Five other Indian Railways companies had Navratna status before IRCTC and IRFC – Container Corporation of India (CONCOR), Rail Vikas Nigam Ltd (RVNL), RITES Ltd, IRCON International Ltd, and RailTel Corporation of India Ltd.
Key Points:
- Navratna Category: Navratnas are government-owned companies that have been accorded greater operational and financial autonomy. They rank between the top-tier Maharatnas and the Miniratnas.
- Criteria for Navratna Status:
The status is based on several performance indicators, which include:- Ratio of Net Profit to Net Worth )
- Ratio of Manpower Cost to Total Cost of Production/Services
- Ratio of Profit Before Depreciation, Interest, and Tax (PBDIT) to Capital Employed or Return on Capital Employed
- Ratio of Profit Before Interest and Taxes (PBIT) to Turnover
- Earnings Per Share (EPS)
- Inter-Sectoral Performance of the Company
- The six indicators carry weights from 10 (for earning per share) to 25 (for ratio of net profit to net worth).
