FM Nirmala Sitharaman approves 'Navratna' status for four CPSEs

Union Finance Minister Nirmala Sitharaman on Friday approved the upgradation of four Central Public Sector Enterprises (CPSEs), including Railtel Corporation of India, Solar Energy Corporation of India, Satluj Jal Vidyut Nigam, and National Hydroelectric Power Corporation, to a  Navratna status. This takes the total number of Navratna CPSEs in India to 25.  

Completing its 13 years of incorporation, SECI is a leading CPSE dedicated to the development and expansion of renewable energy (RE) capacity in India, with a cumulative generation awarded capacity of 69.25 gigawatt (GW) and an annual power trading volume upwards of 42 billion units. SECI is the foremost Renewable Energy Implementing Agency (REIA) of India, continuously working towards fulfilling climate goals and striving for sustainable development.

The company has posted a consolidated annual turnover of Rs 13,118.68 crore, registering an increase of 20.85 per cent over the previous year, and a Profit After Tax (PAT) of Rs 510.92 crore, registering a growth of 34.89 per cent in the financial year 2023-24.

“Classification as a Navratna CPSE enables SECI towards enhanced autonomy in financial and operational matters and will accelerate the company’s growth path through better agility, improved geographical presence, and technology focus,” said the finance ministry statement.

The Department of Public Enterprises (DPE) in its statement said that Rail Ministry India CPSE had an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY 2023-24.

“It will be the 23rd Navratna amongst the CPSEs. SECI is a Ministry of New and Renewable Energy (MNRE) or @mnreindia CPSE with an annual turnover of Rs 13,035 crore and a net profit of Rs 436 crore for FY 2023-24,” said the DPE statement.

DPE further added that NHPC is a Ministry of Power (MinOfPower) CPSE with an annual turnover of Rs 8,405 crore and a net profit of Rs 3,744 crore for FY 2023-24.

“SJVN is a Ministry of Power (MinOfPower) CPSE with an annual turnover of Rs 2,833 crore and a net profit of Rs 908 crore for FY 2023-24,” it added.

The criteria for granting Navratna status to CPSEs by the government is that the CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU ratings in three of the last five years, and having a composite score of 60 or above in the following six selected performance indicators, are eligible to be considered for grant of Navratna status.

The government introduced the Navratna scheme in 1997 to identify CPSEs that had comparative advantages and to support them in their drive to become global giants. Under this scheme, the boards of Navratna CPSEs have also been delegated autonomy in the areas of enhanced powers in (i) capital expenditure, (ii) investment in joint ventures/subsidiaries, (iii) mergers and acquisitions, (iv) human resources management, etc.