Centre Grants ‘Navratna Status’ to IRCTC, IRFC

March 4, 2025

GS Paper III Indian Economy

Centre Grants ‘Navratna Status’ to IRCTC, IRFC

The central government has awarded Navratna status to two public sector companies Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC).

The total number of Navratna companies has reached 26.

About IRCTC

Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is Navratna (ow) listed company under Ministry of Railways, Government of India.
Incorporation Date: 27th September 1999.

Purpose

Upgradation of catering services in Indian Railways
Promotion of rail-bound tourism (domestic & inbound).
Development of budget hotels, special tour packages, global reservation systems, and information commercial publicity.

About IRFC

IT was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.
IRFC is a Navratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India.
It is also registered as Systemically Important Non–Deposit taking Non Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with Reserve Bank of India (RBI).
Primary Objective: Mobilize funds from domestic and international markets to finance Indian Railways’ expansion and asset acquisition.

Criteria for Grant of CPSE Status

Status	Eligibility Criteria
Maharatna (Highest Autonomy)	– Must be a Navratna company – Annual turnover of ₹25,000 crore+ (last 3 years) – Net worth of ₹15,000 crore+ – Net profit of ₹5,000 crore+ (last 3 years) – Global operations or international presence -Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
Navratna (Higher Autonomy)	Must be a Miniratna-I company – Composite score of 60+ based on financial and operational performance. – Can invest up to ₹1,000 crore or 15% of net worth without government approval
Miniratna (Basic Autonomy)	Category I: Profitable for 3 years & pre-tax profit of ₹30 crore+ Category II: Profitable for 3 years but with lower financial thresholds

Navratna and Maharatna companies enjoy greater independence in investment, joint ventures, and operational decision-making.

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