Navratna Companies In India 2024, List of Navratna Companies

Navratna companies are the top tier of Public Sector Undertakings (PSUs) in India, known for their strong financial and operational performance. They can make investments up to ₹1,000 crore without government approval. These companies play an important role in boosting the country’s economy.

What is Navratna Company ?

A Navratna company in India is a public sector enterprise with special status due to its strong performance. These companies are important to the economy and are recognized both in India and abroad. Once given Navratna status, they gain more independence in areas like spending, investments, and managing staff. The Indian government classifies public sector enterprises into three groups, and Navratna companies are the top tier.

They can invest up to 1000 crore without needing permission from the government. Some well-known Navratna companies are BHEL, ONGC, and NTPC, there are in total 24 Navratna Companies. These companies play very important roles in areas like energy, engineering, and telecommunications, and they are the backbone of India’s industrial growth. They contribute a lot to the country’s economic development. People studying for the IAS Exam should keep up-to-date with the latest news about the economy.

What is Eligibility Criteria of Navratna Companies ?

To be granted the Navratna status, a Central Public Sector Enterprise must fulfil certain eligibility criteria.

• The company must have Miniratna Category-I status and be listed under the Schedule-A listing of Central Public Sector Enterprises.
• These organisations have the authority to undertake substantial investments up to ₹1,000 crore without needing approval from the Central Government.
• Company should have 4 independent directors on its board.
• It should have received an Excellent or Very Good rating under the Memorandum of Understanding system for at least three out of the last five years.
• The company must achieve a composite score of 60 or higher based on six performance parameters:
  -Net Profit to Net Worth
  -PBDIT (Profit Before Depreciation, Interest, and Taxes)
  -Manpower cost to cost of production or services
  -Gross margin as capital employed
  -Gross profit as Turnover
  -Earnings per Share

Benefits of Navratna Companiey in India

Navratna Companies, classified as Central Public Sector Enterprises in India, enjoy several key advantages:

• Increased Financial Freedom: Unlike Miniratna companies, Navratna Companies have greater financial and operational autonomy. They can invest up to Rs. 1,000 crore or 15% of their net worth in a single project without needing government approval.
• Flexible Investment Limits: They can invest up to 30% of their net worth within a year, provided the total investment remains under Rs. 1,000 crore.
• Global Operations: Navratna Companies have the flexibility to enter joint ventures, form alliances, and set up subsidiaries abroad, enhancing their operational scope and opportunities.

How many Navratna Companies in India

The Government of India has designated 24 Central Public Sector Enterprises (CPSEs) as Navratna Companies based on specific criteria. Below is a table listing these Navratna Companies for your reference: Here are the navratna company list in India.

24 Navratna Companies

• Bharat Electronics Limited (BEL) – A defense and aerospace electronics company, founded in 1954. It produces electronic and radar systems and operates under the Ministry of Defence.
• Container Corporation of India (CONCOR) – Established in 1988, this company handles India’s inland container terminals and plays a key role in international shipping.
• Engineers India Limited (EIL) – Founded in 1965, EIL provides engineering consultancy and project management, specializing in the petroleum and natural gas sector.
• Mahanagar Telephone Nigam Limited (MTNL) – Established in 1986, MTNL provides telecom services in Delhi and Mumbai.
• National Aluminium Company Limited (NALCO) – Founded in 1981, NALCO is a leading aluminium producer with operations in mining, refining, and smelting.
• National Buildings Construction Corporation Limited (NBCC) – A major construction company, established in 1960, focusing on government projects and infrastructure.
• Neyveli Lignite Corporation (NLC) – Established in 1956, NLC specializes in lignite coal mining and power generation.
• National Mineral Development Corporation (NMDC) – Founded in 1956, NMDC is India’s largest producer of iron ore.
• Rashtriya Ispat Nigam Limited (RINL) – A major steel manufacturer, founded in 1982, RINL operates the Visakhapatnam Steel Plant.
• Shipping Corporation of India (SCI) – Established in 1948, SCI is a leading shipping company with a global presence.
• Rail Vikas Nigam Limited (RVNL) – A key player in railway infrastructure, RVNL executes projects for the Ministry of Railways.
• ONGC Videsh Ltd (OVL) – A subsidiary of ONGC, OVL handles India’s overseas oil and gas exploration.
• Rashtriya Chemicals & Fertilizers Ltd (RCF) – Established in 1978, RCF manufactures fertilizers and chemicals.
• IRCON International Limited – Founded in 1976, IRCON focuses on infrastructure development, especially railway projects.
• Rail India Technical & Economic Services (RITES) – A transport consultancy firm, established in 1974, providing services in railway and urban planning.
• National Fertilizers Limited (NFL) – Established in 1974, NFL manufactures fertilizers like urea and ammonium nitrate.
• Central Warehousing Corporation (CWC) – Founded in 1957, CWC provides warehousing and logistics services.
• Housing & Urban Development Corporation (HUDCO) – Founded in 1970, HUDCO focuses on affordable housing and urban development.
• Indian Renewable Energy Development Agency (IREDA) – Established in 1986, IREDA promotes renewable energy projects by providing financial support.
• Mazagon Dock Shipbuilders Ltd – Established in 1778, Mazagon Dock is a leading shipbuilding company known for building warships, submarines, and commercial vessels.

HAL is no longer Navratna company: It is Maharatna

Hindustan Aeronautics Limited (HAL) is a prime example of excellence, earning the prestigious Maharatna status. It is now the 14th Central Public Sector Enterprise (CPSE) in India to achieve this milestone. HAL, a leader in aerospace and defense, received this upgrade after approval from the Finance Minister, based on recommendations from the Inter-Ministerial Committee and the Apex Committee.

Conclusion:

Navratna companies are elite public sector enterprises granted greater autonomy. They are important for India’s economic growth and play important roles in various sectors, from defense to infrastructure. These companies focus for future growth and could eventually attain Maharatna status.

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