Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) have been upgraded to to the Navratna status.
In a social media post shared by the Department of Public Enterprises on X, the government approved the upgradation of IRCTC and IRFC to Navratna central public sector enterprises (CPSEs), making them the 25th and 26th Navratna CPSEs.
“IRCTC is a Ministry of Railways CPSE with an annual turnover of ₹4,270.18 crore, PAT of ₹1,111.26 crore, and a net worth of ₹3,229.97 crore for FY 2023-24,” it added.
In a separate post, the Department of Public Enterprises noted IRFC is a Ministry of Railways CPSE with an annual turnover of ₹26,644 crore, PAT of ₹6,412 crore and a net worth of ₹49,178 Cr for FY 2023-24.
IRCTC shares closed 0.75% higher at ₹676.05 after Monday's stock market session, compared to ₹671.05 in the previous market close. However, Indian Railway Finance Corporation (IRFC) shares closed 1.11% lower at ₹111.15, compared to ₹112.40 at the previous market close.
Union Minister Ashwini Vaishnaw posted on his social media platform X account on Monday, congratulating the teams of the IRCTC and IRFC for contributing to the inclusion in the ‘Navratna’ status.
“Congratulations to team IRCTC and team IRFC on being upgraded to Navratna status,” said Ashwini Vaishnaw in his post on platform X.
The Navratna status is given to public sector undertakings (PSU) with exceptional financial and market performance. This move recognises their value and allows them to expand their financial powers.
One of the benefits of the ‘Navratna’ status is that the companies will have financial and operational freedom, which will let them invest up to ₹1,000 crore or 15 percent of their net worth on a single project without asking for prior approval from the central government.
They will also be able to form alliances and create subsidiaries and joint ventures independently. Some of the other Navaratna firms are Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL).
There are a total of three classifications for central government recognition, i.e., the Miniratna, the Navaratna, and the Maharatna.
(By arrangement with livemint.com)
