Two Central Public Sector Enterprises (CPSEs) affiliated with the Ministry of Railways, Indian Railways Catering & Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC), are expected to be granted Navratna status soon. Both companies currently hold Miniratna status. The government has reportedly completed an assessment of their performance, and the new status is likely to be announced this week.
The Navratna status, introduced in 1997, is awarded to government-owned enterprises with exceptional financial and market performance. This status provides them with greater financial and operational autonomy, enabling faster decision-making and more freedom in investments.
With Navratna status, IRCTC and IRFC will gain the ability to make significant investments without requiring government approval. They will also be allowed to form joint ventures, establish overseas subsidiaries, and invest up to 30% of their net worth annually, with a cap of Rs 1,000 crore. These changes are expected to pave the way for enhanced growth and increased opportunities for these CPSEs.
IRCTC (Indian Railways Catering and Tourism Corporation) is a subsidiary of Indian Railways, primarily responsible for providing catering, tourism, and online ticketing services to rail passengers in India. It is one of the largest e-commerce entities in India, facilitating millions of ticket bookings daily.
IRFC (Indian Railway Finance Corporation) is a public sector undertaking under the Ministry of Railways, responsible for financing the acquisition of rolling stock and other assets for Indian Railways. It raises funds through the issuance of bonds and offers long-term financial solutions to the railway sector.
