On Monday, 3 March 2025, the Government of India made a historic announcement. The Indian government granted Navratna status to two public sector companies, IRCTC and IRFC. What does this status mean? This status is awarded to public sector companies that demonstrate exceptional competence and efficiency in operations and financial management.
IRCTC operates in the field of online railway ticketing, catering, and tourism services, while IRFC fulfills the financial requirements of Indian Railways. With this status, both companies will be able to operate autonomously and make investment and disinvestment-related decisions more swiftly. Let’s dig deeper about Navratna companies in India.
Table of Contents
What is a Navratna Company?
‘Navratna’ is a title given to the selected Central Public Sector Enterprises (CPSE) by the Indian Government. This status allows the companies to make financial and operational decisions more swiftly and without seeking approval from the government. This status will enable quicker and cost-effective execution of operations and increase the company’s competitiveness.
Navratna companies can form joint ventures, restructure, expand globally with ease and make investment decisions independently. In essence, this status gives rights to a CPSE to operate independently like a private corporation while keeping the state ownership.
List of Navratna Companies in India
With the latest addition of IRCTC and IRFC, there are 26 Navratna companies. Below is the list of Navaratna companies in India:
| Company | MCap (INR Cr) |
| Bharat Electronics Limited (BEL) | 1,92,247 |
| Container Corporation of India (CONCOR) | 38,102 |
| Engineers India (EIL) | 8,192 |
| Mahanagar Telephone Nigam (MTNL) | 2,537 |
| National Aluminium Company (NALCO) | 32,968 |
| National Buildings Construction Corporation (NBCC) | 19,991 |
| Neyveli Lignite Corporation (NLC) | 28,891 |
| NMDC | 54,536 |
| Rashtriya Ispat Nigam (RINL) | Not listed |
| Shipping Corporation of India (SCI) | 6,754 |
| Rail Vikas Nigam (RVNL) | 68,180 |
| ONGC Videsh | 2,82,993 |
| Rashtriya Chemicals & Fertilizers (RCF) | 6,394 |
| IRCON International | 13,379 |
| RITES | 9,607 |
| National Fertilizers (NFL) | 3,852 |
| Central Warehousing Corporation (CWC) | Not listed |
| Housing & Urban Development Corporation (HUDCO) | 33,482 |
| Indian Renewable Energy Development Agency (IREDA) | 39,429 |
| Mazagon Dock Shipbuilders (MDL) | 87,856 |
| Railtel Corporation of India | 8,924 |
| Solar Energy Corporation of India (SECI) | Not listed |
| NHPC | 73,530 |
| SJVN | 32,460 |
| Indian Railway Catering and Tourism Corporation (IRCTC) | 53,720 |
| Indian Railway Finance Corporation (IRFC) | 1,49,373 |
What are the Eligibility Criteria for Navratna Status
To qualify as a Navratna CPSE, a company must have unprecedented financial and operational benchmarks. The key eligibility criteria include:
- Miniratna-I Status: The should have been classified as a Miniratna-I CPSE.
- Schedule ‘A’ Classification: The company must have schedule (A) enterprise ranking.
- Consistent Performance Ratings: The CPSE must have secured an ‘excellent’ or ‘very good’ rating in at least three of the past five years based on performance parameters outlined in its Memorandum of Understanding (MoU) with the government.
- Financial Strength: The company must attain a composite score of at least 60 based on key financial indicators, such as:
- Net profit to net worth ratio
- Earnings per share (EPS)
- Manpower cost to total cost of production
- Inter-sectoral performance comparisons
What are the Benefits of the Navratna Status?
The Navratna classification brings you a special set of privileges that provide liberty to a CPSE. Below are the core benefits:
1. Investment Liberty
Navratna companies can invest up to INR 1,000 crore or 15% of their net worth (whichever is lower) in a single project without the government’s approval. This freedom speeds up the execution of projects and enables the company to make large-scale expansion decisions.
2. Power to Partnership
Enterprises can enter into joint ventures, establish new subsidiaries, and make alliances both domestically and internationally. It brings new business opportunities and increased market reach.
3. Organizational Restructuring & Business Diversification
Navratna can engage in organizational restructuring without bureaucratic delays. This allows the company to adapt to the market efficiently.
4. Swift Decision
By reducing dependency on government approvals, Navratna Enterprises can make critical financial and operational decisions swiftly. This agility enhances efficiency and enables them to capitalize on emerging market opportunities.
5. Market Credibility
The Navratna classification boosts the market credibility of a company. Navratna PSUs are more stable, efficient, and financially sound, which is believed by investors and stakeholders
The Road Ahead for IRCTC and IRFC
IRCTC: Strengthening the Digital & Travel Ecosystem
IRCTC is the backbone of online railway ticketing in India. The elevation to Navratna status will allow the company to diversify its services further. IRCTC has an annual turnover of INR 4,270 crore and a net worth of INR 3,230 crore in FY24. IRCTC launched its IPO on 30 September 2019. Investors showed an incredible response to the IPO, and the issue was subscribed 111X. The listing performance was also impressive; on the listing day, it delivered 135% returns.
IRFC: The Financial Powerhouse of Indian Railways
IRFC is the financing arm of Indian Railways. it has an even more significant role to play post-Navratna classification. The company has an annual turnover of INR 26,644 crore, a net worth of INR 49,178 crore, and an order book of INR 97,000 crore. The company can now expedite funding decisions for railway infrastructure projects which ensures faster modernization and expansion of India’s railway network.
IRFC launched its IPO on 18 January 2021, the issue subscribed 3.4 times on the listing day. However, the INR 4,633 crore issue was listed 3.81% down on listing day due to the ongoing pandemic and various global factors. The stock soon turned into a multibagger and delivered explosive returns of 5,700% from its lowest level.
Key Takeaway
What are Miniratna Companies? Miniratna status for CPSEs in India provides financial autonomy by the government based on profitability. This category is classified into two sub-categories. Category-I Miniratnas can invest up to INR 500 crore or their net worth, while Category-II Miniratnas can invest up to INR 300 crore or 50% of their net worth, whichever is lower.
What are Maharatna Companies? Maharatna status is given to the top-tier CPSEs in India. To qualify as Maharatna, the company should already be a Navratna and have a net profit of INR 5,000 crore, a turnover of INR 25,000 crore, and net worth of INR 15,000 crore for three consecutive years. A Maharatna can invest up to INR 5,000 crore or 15% of their net worth whichever is lower.
Final Thoughts
The Navratna, Maharatna, and Miniratna status gives different levels of freedom to India’s CPSEs. This helps them in work efficiency, compitition, and allows them to contribute in India’s economic growth. By this they get more decision-making power and developes faster. As these companies gain global recognition, their role in infrastructure, finance, and industry becomes stronger.