Navratna Scheme FM Nirmala Sitharaman approves 'Navratna' status for four CPSEs
New Delhi/IBNS: Union Finance Minister Nirmala Sitharaman on Friday (August 30) approved the upgradation of four Central Public Sector Enterprises (CPSEs) to a Navratna status.
These four CPSEs are Railtel Corporation of India, Solar Energy Corporation of India, Satluj Jal Vidyut Nigam, and National Hydroelectric Power Corporation.
With this approval, the total number of Navratna CPSEs in India rises to 25.
Completing its 13 years of incorporation, SECI is a leading CPSE dedicated to the development and expansion of renewable energy (RE) capacity in India, with a cumulative generation awarded capacity of 69.25 gigawatt (GW) and an annual power trading volume upwards of 42 billion units, reports Business Standard.
SECI is the foremost Renewable Energy Implementing Agency (REIA) of the country, continuously working towards fulfilling climate goals and striving for sustainable development, reports said.
The company has posted a consolidated annual turnover of Rs 13,118.68 crore, registering an increase of 20.85 percent over the previous year, and a Profit After Tax (PAT) of Rs 510.92 crore, registering a growth of 34.89 percent in the financial year 2023-24, according to the Business Standard report.
“Classification as a Navratna CPSE enables SECI towards enhanced autonomy in financial and operational matters and will accelerate the company’s growth path through better agility, improved geographical presence, and technology focus,” the Union Finance Ministry statement read.
The Department of Public Enterprises (DPE) said in a statement that Rail Ministry India CPSE had an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY 2023-24.
“It will be the 23rd Navratna amongst the CPSEs. SECI is a Ministry of New and Renewable Energy (MNRE) or @mnreindia CPSE with an annual turnover of Rs 13,035 crore and a net profit of Rs 436 crore for FY 2023-24,” according to the DPE statement.
DPE further stated that NHPC is a Ministry of Power (MinOfPower) CPSE with an annual turnover of Rs 8,405 crore and a net profit of Rs 3,744 crore for FY 2023-24.
“SJVN is a Ministry of Power (MinOfPower) CPSE with an annual turnover of Rs 2,833 crore and a net profit of Rs 908 crore for FY 2023-24,” DPE added.
The criteria for granting Navratna status to CPSEs by the central government is that the CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU ratings in three of the last five years, and having a composite score of 60 or above in the following six selected performance indicators, are eligible to be considered for grant of Navratna status, reports the Business Standard.
In 1997, the central government introduced the Navratna scheme to identify CPSEs that had comparative advantages and to support them in their drive to become global giants.
Under the Navratna scheme, the boards of Navratna CPSEs have also been delegated autonomy in the areas of enhanced powers in (i) capital expenditure, (ii) investment in joint ventures/subsidiaries, (iii) mergers and acquisitions, (iv) human resources management, etc, according to reports.
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