Navratna Companies

Nurturing Excellence: Navratna Status Unveiled

Eligibility Criteria of Navratna Companies

To attain the esteemed Navratna status, a company must initially hold the Miniratna designation and boast a board featuring a minimum of 4 independent directors. The company must achieve a scoring threshold of 60 out of 100, determined by specific parameters:

1. PBDIT (Profit Before Depreciation, Interest, and Taxes): Reflecting the financial prowess and profitability.
2. Total Manpower Cost: Evaluating the efficiency in managing and optimizing the workforce.
3. Cost of Services: Assessing the cost-effectiveness and value proposition in service delivery.
4. Capital Employed: Gauging the company’s strategic use of capital for operations and growth.
5. Net Worth: Reflecting the overall financial health and stability.
6. Net Profit: Demonstrating the company’s profitability after all expenses.
7. Cost of Services (Again): Reiterating the focus on efficient service management.

Benefits for Investment

Companies holding the Navratna status can leverage significant benefits for their investments:

• Project Investment: Enjoy the flexibility to invest up to Rs. 1,000 crore or 15% of their net worth on a single project.
• Annual Investment: Benefit from an investment cap of 30% of their net worth throughout the year, ensuring strategic financial allocation (not exceeding Rs. 1,000 crores).

The Navratna status serves as a symbol of excellence, opening avenues for enhanced financial capabilities and strategic investments.

Insights into Navratna CPSEs

1. Bharat Electronics Limited (BEL)

BEL, a leader in defense electronics, operates in radar systems, communication equipment, and electronic warfare. Its pivotal role ensures cutting-edge technology for India’s defense forces.

2. Container Corporation of India Limited (CONCOR)

CONCOR specializes in containerized cargo movement, offering efficient logistics solutions. It manages a vast network of container terminals and provides seamless cargo transportation.

3. Engineers India Limited (EIL)

EIL excels in engineering consultancy and EPC services in the hydrocarbon industry. It plays a vital role in shaping India’s energy landscape.

4. Hindustan Aeronautics Limited (HAL)

HAL, a pioneer in aerospace, designs and manufactures aircraft, helicopters, and related systems. It’s a key player in India’s defense and civilian aviation sectors.

5. Mahanagar Telephone Nigam Limited (MTNL)

MTNL is a leading telecom service provider, offering landline, mobile, and broadband services. It plays a crucial role in connecting people and businesses.

6. National Aluminium Company Limited (NALCO)

NALCO is a major player in the aluminum industry, involved in mining, refining, and producing aluminum. It contributes significantly to India’s industrial growth.

7. National Buildings Construction Corporation Limited (NBCC)

NBCC, a construction giant, focuses on project management and real estate development. It undertakes complex projects, including infrastructure and residential ventures.

8. Neyveli Lignite Corporation Limited (NLC)

NLC is a prominent power generation company, primarily engaged in lignite mining and power generation. It caters to India’s growing energy needs.

9. NMDC Limited

NMDC, a major player in the iron ore industry, explores, mines, and processes iron ore. Its operations contribute significantly to India’s steel production.

10. Rashtriya Ispat Nigam Limited (RINL)

RINL, known as Vizag Steel, is a leading steel producer. It plays a crucial role in meeting the demand for high-quality steel in various industries.

11. Shipping Corporation of India Limited (SCI)

SCI is a major shipping company, operating both domestically and internationally. It facilitates the transportation of goods by sea, contributing to trade and commerce.

12. Rail Vikas Nigam Limited (RVNL)

RVNL focuses on railway infrastructure development, undertaking projects to enhance the efficiency and capacity of India’s rail network.

13. ONGC Videsh Ltd (OVL)

OVL, the international arm of ONGC, explores and produces oil and gas globally. It contributes significantly to India’s energy security.

14. Rashtriya Chemicals & Fertilizers Limited (RCF)

RCF is a key player in the fertilizer and chemical industry. It plays a vital role in ensuring agricultural productivity through the production of fertilizers.

15. IRCON International Limited

IRCON is involved in infrastructure development, specializing in railways and highways. It contributes to the creation of robust transportation networks.

16. RITES Limited

RITES is a multi-disciplinary consultancy organization providing diverse services in transport infrastructure. It plays a pivotal role in shaping India’s transportation systems.

These Navratna CPSEs collectively form the backbone of India’s strategic sectors, contributing significantly to the nation’s growth and development.

F.A.Q.