Navratna Status For IRCTC And IRFC

1. 1. 1. In March  2025, the Government of India conferred 'Navratna' status upon two railway public sector undertakings (PSUs):Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC)
      2. This makes IRCTC and IRFC the 25th and 26th Navratna Central Public Sector Enterprises (CPSEs) respectively.

How Navratna Status Benefits IRCTC & IRFC

1. Both companies can now invest up to ₹1,000 crore or 15% of their net worth in a single project without government approval
2. They gain greater financial and operational autonomy
3. They can form joint ventures, subsidiaries, and make acquisitions or mergers independently
4. They can also expand globally and form strategic international alliances
5. Navratna status enhances their market credibility, helping them attract more investors
6. This also gives them the ability to compete with private sector companies on a level playing field.

Indian Railway Catering and Tourism Corporation (IRCTC)

1. 1. 1. Indian Railway Catering and Tourism Corporation (IRCTC) was established on 27 September 1999.
      2. It was created as a public sector undertaking (PSU) fully owned by the Government of India.
      3. The company operates under the control of the Indian Railways.
      4.   IRCTC is the only authorised online train ticket seller in India
      5.  It is an extended arm of Indian Railways, also handling catering, tourism, and packaged drinking water (Rail Neer)
      6. In May 2008, IRCTC was granted Miniratna status.
      7. In 2019, IRCTC was listed on the National Stock Exchange (NSE).
      8. After listing, the Government of India’s ownership dropped to 87%.
      9. The remaining 13% of shares were made available for public trading.
      10. In December 2020, the government sold another 20% of its shares in IRCTC.
      11. This reduced the government’s holding in IRCTC to 67%.
      12. In December 2022, the government further disinvested 5% of its shareholding.
      13. After this, the government’s ownership in IRCTC came down to 62.4%.

Indian Railway Finance Corporation (IRFC)

1. Indian Railway Finance Corporation (IRFC) is a public sector undertaking (PSU) in India.
2. Indian Railway Finance Corporation (IRFC) was founded on 12 December 1986.
3. The company is primarily engaged in raising financial resources for the expansion and operation of Indian Railways.
4. It started borrowing funds from the market during the financial year 1987–88.
5. IRFC launched its Initial Public Offering (IPO) on 18 January 2021.
6. The company got listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 29 January 2021.
7. As per the Q3 reports for financial year 2024–25, the Government of India holds 86.36% ownership in IRFC.
8. The remaining 13.64% of the shares are held by the public.
9. Indian Railway Finance Corporation (IRFC) is a public sector undertaking (PSU) in
10. In March 2025, the Government of India granted IRFC the status of Navratna.
11. With this, IRFC became the 26th PSU to receive Navratna status.

What are Public Sector Undertakings (PSUs)?

1. Public Sector Undertakings (PSUs) are companies owned by the government in India.
2. A company is considered a PSU when the government holds 51% or more of its paid-up share capital.
3. This ownership can be by the central government, state government, or a combination of both.
4. PSUs regularly provide employment opportunities in technical and managerial fields.

Maharatna PSUs

1. Maharatna is the highest status given to top-performing PSUs.
2. These companies can invest up to ₹5,000 crore in foreign projects without needing government approval.
3. To qualify as Maharatna, a PSU must have a net profit of over ₹5,000 crore, a net worth of ₹15,000 crore, and a turnover of ₹25,000 crore in the last three consecutive years.
4. There are currently 14 Maharatna PSUs: BHEL, BPCL, CIL, GAIL, HPCL, IOCL, NTPC, ONGC, PFC, RECL, OIL India Ltd, PGCIL, SAIL, and HAL.

Navratna PSUs

1. Navratna status is granted by the Department of Public Enterprises, Government of India.
2. To become a Navratna, a company must already be a Miniratna and must have four independent directors on its board.
3. The company must also score at least 60 out of 100 on six key financial performance metrics.
4. Navratna companies are allowed to invest up to ₹1,000 crore or 15% of their net worth in a single project without government approval.
5. They can spend up to 30% of their net worth annually, not exceeding ₹1,000 crore.
6. They also have the autonomy to enter joint ventures, form alliances, and float subsidiaries abroad.
7. There are currently 25 Navratna PSUs in India.

Miniratna PSUs

1. Miniratna PSUs are divided into two categories: Category-I and Category-II.
2. These companies are financially sound but operate at a smaller scale compared to Maharatna and Navratna companies.
3. Miniratnas have limited financial and operational autonomy.
4. There are currently 51 Miniratna Category-I PSUs and 11 Miniratna Category-II PSUs.

Miniratna Category-I

1. The PSU must have made profits continuously for the last three years.
2. It should have a positive net worth.
3. It must have earned a pre-tax profit of ₹30 crore or more in at least one of the last three years.
4. It has greater financial autonomy: Can invest up to ₹500 crore or equal to their net worth, whichever is lower, without government approval.

Miniratna Category-II

1. The PSU must have made profits continuously for the last three years.
2. It should have a positive net worth, just like Category-I.
3. No ₹30 crore pre-tax profit requirement (this is the key difference).
4. It has lesser financial autonomy:Can invest up to ₹300 crore or up to 50% of their net worth, whichever is lower, without government approval.

Indian Railways PSU	Function	Navratna Status Since
CONCOR	Multimodal logistics; container freight transport via rail and road; EXIM trade facilitation	July 2014
RVNL (Rail Vikas Nigam Ltd)	Execution of railway infrastructure projects: track laying, gauge conversion, electrification	2023
RITES Ltd	Engineering consultancy in transport, infrastructure, and urban mobility (India & abroad)	2023
IRCON International Ltd	Turnkey railway and highway construction; bridges, tunnels, tracks; international projects	2023
RailTel Corporation of India Ltd	Telecom and ICT services; broadband, Wi-Fi, surveillance, and digital solutions via rail network	August 2024
IRCTC	Online ticketing, catering, tourism, and Rail Neer bottled water for Indian Railways	March 2025
IRFC	Financial arm of Indian Railways; raises funds through market borrowings	March 2025