The Indian government has recognized three large public sector enterprises- NHPC, SJVN and RailTel as "Navratnas". The three have become the 18th, 19 and twentieth companies to earn this special title. For a lot of businesses, this position is really the holy grail as it means that they have more freedom and control over how to go about running their business themselves.
Navratna Status Eligibility and Benefits
- Miniratna-I is an award that conferred on profitable Public Sector companies.
- Company must have been rated as 'Excellent' or 'Very Good'in MoUrating for three out of last five years
- The company should have scored at least 60 points in the six financial indicators.
Investment Autonomy
- NHPC, SJVN and RailTel to have flexibility of making investment decision
- They can invest upto ? 1,000 crore or 15% of their net worth in a single project without having to get approval from the government.
- Navratna status allows them the autonomy to open subsidiaries outside India, carry out merger and acquisition opportunities as well as work on restructuring their business. •
Overview of Companies
- SJVN: Having portfolio strength of 56,802 MW in its basket and working on a total number of energy projects i.e. 75.
- NHPC: Leading hydropower company of India having an installation capacity of 7144.
- RailTel is a kind of telecom infrastructure provider and broadband service in India.
- However, shares of SJVN, NHPC & RailTel have corrected sharply over the last few weeks even after getting status.
Month: Current Affairs - September 08, 2024
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