Navratna Status to Four CPSEs

• 03 Sep 2024

Source: BS

Recently, the government upgraded four Central Public Sector Enterprises (CPSEs)—Railtel Corporation of India, Solar Energy Corporation of India, SJVN (Satluj Jal Vidyut Nigam Limited), and NHPC (National Hydroelectric Power Corporation) —to 'Navratna' status. This increases the total number of Navratna CPSEs in India to 25.

• Objective: Launched in 1997, the Navratna scheme aims to identify CPSEs with comparative advantages and help them become global leaders.
  • Navratna status is awarded to government-owned enterprises previously classified as 'Miniratna' category I, recognising their exceptional financial and market performance.
• The Department of Public Enterprises (DPE) in the Ministry of Finance is responsible for granting Navratna status to companies. 
• Benefits of Navratna Status: It gets enhanced financial and operational freedom and empowers it to invest up to Rs 1,000 crore or 15% of its net worth on a single project without seeking government approval.
  • They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

Read More: Sectors of the Indian Economy