FM Nirmala Sitharaman grants 'Navratna' status to four CPSEs

On August 30, 2024, Union Finance Minister Nirmala Sitharaman approved the elevation of four Central Public Sector Enterprises (CPSEs) to 'Navratna' status. The companies granted these statuses are Railtel Corporation of India, Solar Energy Corporation of India (SECI), Satluj Jal Vidyut Nigam (SJVN), and National Hydroelectric Power Corporation (NHPC), bringing the total number of Navratna CPSEs in India to 25.

SECI, a leader in renewable energy development, celebrated its 13th anniversary with this recognition. The company has a cumulative awarded capacity of 69.25 gigawatts (GW) and an annual power trading volume exceeding 42 billion units. SECI also reported a consolidated annual turnover of Rs 131.18 billion for FY 2023-24, a 20.85% increase from the previous year, and a Profit After Tax (PAT) of Rs 5.10 billion, marking a 34.89% growth. The Navratna status will provide SECI with greater financial and operational autonomy, enhancing its growth through improved agility, geographical expansion, and technological focus.

The Department of Public Enterprises (DPE) highlighted Railtel's annual turnover of Rs 26.22 billion and a net profit of Rs 2.46 billion for FY 2023-24. With its new status, Railtel becomes the 23rd Navratna CPSE.

NHPC, another CPSE under the Ministry of Power, reported an annual turnover of Rs 84.05 billion and a net profit of Rs 37.44 billion for FY 2023-24. Meanwhile, SJVN, also under the Ministry of Power, achieved an annual turnover of Rs 28.33 billion and a net profit of Rs 9.08 billion for the same period.

To qualify for Navratna status, a CPSE must be a Miniratna I, Schedule 'A' company with 'excellent' or 'very good' MOU ratings in three of the last five years and must score 60 or above in six selected performance indicators. The Navratna scheme, introduced in 1997, aims to identify and support CPSEs with the potential to become global giants by granting them greater autonomy in areas like capital expenditure, investments, mergers and acquisitions, and human resources management. (Business Standard)

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