The Union Finance Minister on 30 August approved the upgradation of four Central Public Sector Enterprises (CPSEs) to a Navratna status.
- These CPSEs are; Railtel Corporation of India, Solar Energy Corporation of India, Satluj Jal Vidyut Nigam, and National Hydroelectric Power Corporation.
- This takes the total number of Navratna CPSEs in India to 25.
About Navratna scheme
- The government introduced the Navratna scheme in 1997 to identify CPSEs that had comparative advantages and to support them in their drive to become global giants.
- Criteria for granting Navratna status: CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU ratings in three of the last five years, and having a composite score of 60 or above in the six selected performance indicators, are eligible to be considered for grant of Navratna status.
- Benefits: Classification as a Navratna CPSE enables SECI towards enhanced autonomy in financial and operational matters and will accelerate the company’s growth path through better agility, improved geographical presence, and technology focus.
- Under this scheme, the boards of Navratna CPSEs have also been delegated autonomy in the areas of enhanced powers in (i) capital expenditure, (ii) investment in joint ventures/subsidiaries, (iii) mergers and acquisitions, (iv) human resources management, etc.
