Navratna Companies In India 2024, List of Navratna Companies

Navratna Companies are top government-owned businesses in India known for their outstanding performance and big impact on the economy. They have a lot of freedom to decide how to invest their money without needing permission from the government. Some well-known Navratna companies are BHEL, ONGC, and NTPC.

What is Navratna Company ?

A Navratna company is a public sector Company which are undertaken in India. These companies play a significant role in the Indian economy and hold a prestigious position compared to other PSUs.

These companies play very important roles in areas like energy, engineering, and telecommunications, and they are the backbone of India’s industrial growth. They contribute a lot to the country’s economic development. People studying for the IAS Exam should keep up-to-date with the latest news about the economy.

Eligibility Criteria of Navratna Companies

To be granted the Navratna status, a Central Public Sector Enterprise must fulfil certain eligibility criteria.

• The company must have Miniratna Category-I status and be listed under the Schedule-A listing of Central Public Sector Enterprises.
• These organisations have the authority to undertake substantial investments up to ₹1,000 crore without needing approval from the Central Government
• It should have received an Excellent or Very Good rating under the Memorandum of Understanding system for at least three out of the last five years.
• The company must achieve a composite score of 60 or higher based on six performance parameters:
  -Net Profit to Net Worth
  -PBDIT (Profit Before Depreciation, Interest, and Taxes)
  -Manpower cost to cost of production or services
  -Gross margin as capital employed
  -Gross profit as Turnover
  -Earnings per Share
• The company is required to have at least four independent directors on its Board of Directors.

Benefits of Navratna Companies

Navratna Companies, classified as Central Public Sector Enterprises in India, enjoy several key advantages:

• Increased Financial Freedom: Unlike Miniratna companies, Navratna Companies have greater financial and operational autonomy. They can invest up to Rs. 1,000 crore or 15% of their net worth in a single project without needing government approval.
• Flexible Investment Limits: They can invest up to 30% of their net worth within a year, provided the total investment remains under Rs. 1,000 crore.
• Global Operations: Navratna Companies have the flexibility to enter joint ventures, form alliances, and set up subsidiaries abroad, enhancing their operational scope and opportunities.

List of Navratna Companies

The Government of India has designated 24 Central Public Sector Enterprises (CPSEs) as Navratna Companies based on specific criteria. Below is a table listing these Navratna Companies for your reference:

• Bharat Electronics Limited (BEL) is an Indian Government-owned aerospace and defence electronics company. It primarily manufactures advanced electronic products for ground and aerospace applications.
• Container Corporation of India Limited (CONCOR) is an Indian public sector undertaking that is engaged in the transportation and handling of containers.
• Engineers India Limited (EIL) is an Indian public-sector engineering consultancy and technology licensing company.
• Hindustan Aeronautics Limited (HAL) is an Indian public-sector aerospace and defence company, headquartered in Bangalore.
• Mahanagar Telephone Nigam Limited (MTNL) is a wholly owned subsidiary of Bharat Sanchar Nigam Limited which is in turn under the ownership of the Department of Telecommunications, Ministry of Communications, Government of India.
• National Aluminium Company Limited (NALCO) incorporated in 1981) is a government company having integrated and diversified operations in mining, metal, and power under the ownership of the Ministry of Mines, Government of India.
• NBCC (India) Limited, formerly known as National Buildings Construction Corporation is a central public sector enterprise under the Indian Ministry of Housing and Urban Affairs
• NMDC Limited, formerly National Mineral Development Corporation, is a central public sector undertaking. It is under the ownership of the Ministry of Steel, Government of India
• NLC India Limited (NLC) (formerly Neyveli Lignite Corporation Limited) is a central public sector undertaking under the administrative control of the Ministry of Coal, Government of India
• Rashtriya Ispat Nigam Ltd (RINL) is a central public sector company owned by the Ministry of Steel, Government of India. It is located in Visakhapatnam, India, and is the governing body of Visakhapatnam Steel Plant (VSP), which is the country’s first shore-based integrated steel plant, equipped with advanced technology.
• Shipping Corporation of India (SCI) is a Public Sector Undertaking that operates and manages vessels servicing both national and international lines.

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