Indian Renewable Energy Development Agency Ltd (IREDA) has been granted ‘navratna status’ by the Department of Public Enterprises.
- For a company to be accorded navratna status, it should already hold the miniratna category I status and be listed under Schedule A of CPSEs.
Key points
- IREDA is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (the MNRE).
- IREDA provides financial support to projects generating electricity through new and renewable resources.
- Obtaining Navratna status in India bestows significant advantages on a Public Sector Undertaking (PSU).
- These include greater financial and operational autonomy, allowing for swifter decision-making and improved responsiveness to market shifts.
- The enhanced freedom also translates to increased investment opportunities, attracting capital for growth initiatives.
- The Navratna designation serves as a mark of excellence, bolstering the PSU’s market reputation and attracting skilled personnel.
- The Indian government accords the navratna status to top-tier public sector undertakings (PSUs) and these organisations are authorised to undertake substantial investments of up to Rs 1,000 crore without needing approval from the Centre.
- These companies have the liberty to invest up to 30% of their net worth within a year, as long as it stays below Rs 1,000 crore.
- They can also engage in joint ventures, form alliances, and establish subsidiaries abroad.
