Navratna Companies In India 2024, List of Navratna Companies

Navratna Companies constitute a distinguished group of nine public sector enterprises in India, renowned for their exceptional performance and significant contributions to the country’s economy. These entities possess substantial financial autonomy, enabling them to make investment decisions independently within predefined limits, without requiring government approval. Noteworthy Navratna companies include Bharat Heavy Electricals Limited (BHEL), Oil and Natural Gas Corporation (ONGC), and National Thermal Power Corporation (NTPC).

Playing pivotal roles in sectors such as energy, engineering, and telecommunications, these companies serve as the backbone of India’s industrial growth, contributing significantly to the nation’s economic development. Aspirants preparing for the IAS Exam should stay well-informed about the latest developments in the field of 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.
• 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

The Navratna Companies, classified as Central Public Sector Enterprises in India, are entitled to several advantages.

• Firstly, these companies enjoy greater financial and operational autonomy compared to those with Miniratna status.
• They have the privilege to invest up to Rs.1000 crore or 15% of their net worth in a single project without requiring any approval from the Government of India.
• Moreover, they have the freedom to make investments up to 30% of their net worth within a year, as long as it does not exceed Rs.1000 crores.
• Additionally, Navratna Companies possess the flexibility to enter into joint ventures, establish alliances, and establish subsidiaries abroad.

List of Navratna Companies

Navratna companies possess the autonomy to invest up to Rs 1,000 crore without explicit government approval. The Government of India has identified 14 Central Public Sector Enterprises as Navratna Companies, according to specific criteria. Below is a table listing the Navratna Companies in India for 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
• Oil India Limited (OIL) is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India.
• Power Finance Corporation Ltd. (PFC) is an Indian central public sector undertaking under the ownership of the Ministry of Power, Government of India.
• Rashtriya Ispat Nigam Ltd (RINL) is a central public sector undertaking under the ownership of the Ministry of Steel, Government of India based in Visakhapatnam, India. Rashtriya Ispat Nigam Limited (RINL) is the government entity of Visakhapatnam Steel Plant (VSP), India’s first shore-based integrated steel plant built with state-of-the-art technology.
• Rural Electrification Corporation Limited (REC) is the Power Finance Corporation Limited (PFC) a holding company, which in turn is under the ownership of the Ministry of Power, Government of India.
• 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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