Union Finance Ministry gave its approval to upgrade Rail Vikas Nigam Limited (RVNL) to Navratna Central Public Sector Enterprise (CPSE).
- RVNL, a public sector undertaking under the Ministry of Railways, is the 13th Navratna amongst CPSEs.
- Now, the company will have more autonomy in terms of investment, setting up joint venture and other financial decisions.
- The term ‘Navratna’ refers to a select group of top-performing CPSEs that have been granted greater autonomy and financial powers by the Indian government in recognition of their superior performance.
- As per the Navratna Company criteria, the company must have Miniratna status, with 4 independent board directors.
- Moreover, the company must get a score of 60 out of 100 in parameters like net worth, net profit, total production cost, manpower cost, service cost, capital employed, and PBDIT.
- The Navratna status was first granted to nine public sector enterprises in 1997 by the Indian government.
- The Navratna companies are CPSE companies that have been granted financial independence to invest up to Rs. 1,000 crore without seeking approval from the central government.
- Navratna companies are also allowed to invest up to 15% of their net worth on a single project, or 30% of their net worth in a given year, subject to a cap of Rs. 1,000 crore.
List of Navratna companies
- Shipping Corporation of India (SCI)
- Hindustan Aeronautics Limited (HAL)
- Rashtriya Ispat Nigam Limited (RINL)
- Engineers India Limited (EIL)
- NMDC Limited
- Bharat Electronics Limited (BHEL)
- National Buildings Construction Corporation (NBCC)
- Oil India Limited (OIL)
- Mahanagar Telephone Nigam Limited (MTNL)
- Container Corporation of India (CONCOR)
- National Aluminium Company (NALCO)
- NLC India Limited (NLCIL)
- Rail Vikas Nigam Limited (RVNL)
About Rail Vikas Nigam Limited (RVNL)
- To bridge the infrastructure deficit on Indian Railways, the then Prime Minister, Bharat Ratna Shri Atal Bihari Vajpayee announced National Rail Vikas Yojana (NRVY) on 15th August 2002 in his address from the Red Fort.
- NRVY was formally launched by the PM on 26th December 2002. RVNL became fully functional by March 2005.
