Indian Government Upgrades Four CPSEs to Navratna Status

I. Introduction: The Navratna Status

- Recently, four Central Public Sector Enterprises (CPSEs) - Railtel Corporation of India, Solar Energy Corporation of India, SJVN Limited, and the National Hydroelectric Power Corporation (NHPC) have been upgraded to 'Navratna' status by the Indian government. 

- Introduced in 1997, the Navratna scheme was designed to acknowledge CPSEs with comparative advantages and equip them to become potent global leaders.

- This move takes the total tally of Navratna CPSEs in India up to 25.

 

II. Criteria for Navratna Status

- Navratna status is awarded by the Department of Public Enterprises (DPE) under the purview of the Ministry of Finance.

- The status is bestowed upon government-owned enterprises that were previously classified as 'Miniratna' category I. 

- This recognition is given considering their exceptional financial stability and market performance.

 

III. Added Advantages: Benefits of Navratna Status

- Granting Navratna status comes with multiple benefits, significantly enhancing the financial and operational freedom of these enterprises.

- The companies attain the power to invest upto INR 1,000 crore or 15% of their net worth on a single project without the need for government approval.

- Increased financial autonomy permits these enterprises to embark on joint ventures, form strategic alliances, and float subsidiaries abroad, broadening their operational domain.

 

IV. Know Your Navratna: Insights into the Recently Upgraded Entities 

- Railtel Corporation of India is a Mini Ratna (Category-I) enterprise focusing on providing nationwide broadband, telecom and multimedia networks. 

- Solar Energy Corporation of India, under the administrative control of the Ministry of New and Renewable Energy, is dedicated to the promotion and commercialization of solar energy technologies.

- SJVN Limited, a joint venture between the Government of India and the Government of Himachal Pradesh, is engaged in the generation and sale of electricity.

- The National Hydroelectric Power Corporation (NHPC) is an Indian Hydropower generation company that holds a Miniratna Category-I CPSE status. 

Concluding Note: The allocation of the Navratna status to these CPSEs underscores the government's commitment to enhancing the performance of public sector enterprises and promoting self-reliance. These enterprises will now have increased operational autonomy, paving the way for higher efficiency and growth.