Centre Confers Navratna Status to IRCTC and IRFC
Click to start listening
Synopsis
The Central government has upgraded IRCTC and IRFC to Navratna status, enhancing their financial autonomy and decision-making capabilities. This milestone acknowledges their significant performance improvements in net profit and net worth.
Key Takeaways
- IRCTC and IRFC now hold Navratna status, enhancing their autonomy.
- They can invest up to Rs 1,000 crore without government approval.
- IRCTC reported a turnover of Rs 4,270.18 crore.
- IRFC achieved a turnover of Rs 26,644 crore.
- Navratna status aims to improve efficiency of CPSEs.
New Delhi, March 3 (NationPress) The Central government has elevated the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to the esteemed classification of Navratna Central Public Sector Enterprises (CPSE). This upgrade comes as both companies have demonstrated significant improvements in key metrics such as net profit and net worth, fulfilling the necessary eligibility standards.
This newly granted Navratna status empowers these enterprises with enhanced autonomy in their financial dealings.
As announced by the Department of Public Enterprises, IRCTC and IRFC are now the 25th and 26th Navratna entities among CPSEs, marking a pivotal achievement for the Indian Railway sector.
With the Navratna designation, these organizations are permitted to invest up to Rs 1,000 crore without prior government consent, streamlining decision-making processes for their future growth strategies.
The Union government categorizes CPSEs into three tiers: Maharatna, Navratna, and Miniratna, aiming to enhance the competitiveness and efficiency of these public sector undertakings.
In the fiscal year that ended on March 31, 2024, IRCTC, operating under the Ministry of Railways, reported a 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.
Meanwhile, IRFC, also under the Ministry of Railways, achieved a turnover of Rs 26,644 crore, a net profit of Rs 6,412 crore, and a net worth of Rs 49,178 crore during the same timeframe, according to the Department of Public Enterprises' announcements on the social media platform X.
Railway Minister Ashwini Vaishnaw congratulated both companies on their accomplishment, stating, "Congratulations to team IRCTC and team IRFC for attaining Navratna status," in a post on X.
Established in 1999, IRCTC offers ticketing, catering, and tourism services for the state-owned Indian Railways, maintaining a high degree of consumer interaction. Founded in 1986, IRFC is tasked with raising funds for the extensive infrastructure development and modernization initiatives of Indian Railways.
With this recognition, IRCTC and IRFC join the ranks of other Navratna CPSEs, including Bharat Electronics Ltd., Container Corporation of India, Hindustan Aeronautics Ltd., and Oil India Ltd., among others.
In recent months, other companies like Satluj Jal Vidyut Nigam Ltd., National Hydroelectric Power Corp., Solar Energy Corp., and RailTel Corp have also been elevated to Navratna status, with Mazagon Dock Shipbuilders Ltd., joining the group in July 2024.
