New Delhi, March 3: The Central government on Monday upgraded the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to the prestigious status of Navratna Central Public Sector Enterprises (CPSE) as the performance on key parameters such as net profit and net worth of the two companies have risen to meet the required eligibility criteria.
The new Navratna status will give these companies more autonomy in taking financial decisions. With the announcement made by the Department of Public Enterprises, IRCTC and IRFC have become the 25th and 26th Navratna among the CPSEs, respectively, marking a major milestone for the Indian Railway companies.
The elevation to Navratna status grants the two companies greater financial autonomy, allowing them to invest up to Rs 1,000 crore without first seeking government approval, which will help to expedite decision-making in their growth plans ahead.
The Union government categorises CPSEs into three groups: Maharatna, Navratna, and Miniratna. The Centre’s aim is to make these PSUs much more competitive and efficient. IRCTC, under the Ministry of Railways, reported an annual turnover of Rs 4,270.18 crore, a net profit of Rs 1,111.26 crore, and a net worth of Rs 3,229.97 crore in the financial year ended March 31, 2024.
IRFC, also under the Ministry of Railways, recorded a turnover of Rs 26,644 crore, a net profit of Rs 6,412 crore, and a net worth of Rs 49,178 crore in the same period, the Department of Public Enterprises said in two separate posts on the social media platform X.
Meanwhile, Railway Minister Ashwini Vaishnaw complemented the two companies for the achievement. “Congratulations to team IRCTC and team IRFC on being upgraded to Navratna status,” the Union Minister posted on X. IRCTC, which was founded in 1999, provides ticketing, catering, and tourism services for the state-owned Indian Railways and has a high level of interaction with consumers.
IRFC, founded in 1986, is responsible for mobilising funds for Indian Railways’ massive infrastructure expansion and modernisation projects. With this upgrade, IRCTC and IRFC join other Navratna CPSEs, including Bharat Electronics Ltd., Container Corporation of India, Hindustan Aeronautics Ltd., Oil India Ltd., among others.
Previously in September Satluj Jal Vidyut Nigam Ltd., National Hydroelectric Power Corp., Solar Energy Corp., and RailTel Corp were elevated to ‘Navratna’ status. In July 2024, Mazagon Dock Shipbuilders Ltd., was added to the group of Navratna companies.
IANS