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The Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) have been granted Navratna status by the Government of India, becoming the 25th and 26thNavratna CPSEs (Central Public Sector Enterprises) in India. This recognition enhances their operational autonomy and positions them for further growth and expansion.

What is Navratna Status?

Navratna status is a prestigious classification granted by the Department of Public Enterprises (DPE) under the Ministry of Finance to select CPSEs that demonstrate exceptional financial and operational performance. The status provides these enterprises with enhanced autonomy, empowering them to make decisions independently and engage in significant investments without needing government approval.

Eligibility Criteria for Navratna Status:

• Must be a Miniratna-I CPSE with a positive net worth.
• Must secure an Excellent or Very Good MoU rating for three of the last five years.
• Must score 60+ points on key financial indicators, such as net profit, net worth, and manpower cost.
• The board must have at least four independent directors.

Benefits of Navratna Status:

• Investment Autonomy: Ability to invest up to ?1,000 crore or 15% of net worth without government approval.
• Global Expansion: Freedom to form joint ventures, subsidiaries, and alliances globally.
• Increased Market Credibility: Attracts strategic partnerships and enhances business growth.

About IRCTC and IRFC

• Indian Railway Catering and Tourism Corporation (IRCTC):
  • Establishment: 1999
  • Ministry: Ministry of Railways, Government of India
  • Key Functions:
    • E-Ticketing: Manages online train reservations through portals and mobile apps.
    • Catering Services: Operates onboard catering and manages railway food plazas.
    • Tourism Services: Offers rail-based tourism packages, including luxury trains like Maharajas’ Express.
    • Rail Neer: Supplies packaged drinking water for railway passengers.
• Indian Railway Finance Corporation (IRFC):
  • Establishment: 12 December 1986
  • Ministry: Ministry of Railways, Government of India
  • Key Functions:
    • Funding Indian Railways: Provides low-cost capital for railway expansion and modernization.
    • Market Borrowings: Raises funds through bonds, external borrowings, and public offerings.
    • Rolling Stock Leasing: Finances the procurement of locomotives, coaches, and wagons.
    • Infrastructure Development: Supports the modernization and electrification of railway networks.

Performance of IRCTC and IRFC for FY 2023-24:

• IRCTC:
  • Annual Turnover: ?4,270.18 crore
  • Profit After Tax (PAT): ?1,111.26 crore
  • Net Worth: ?3,229.97 crore
• IRFC:
  • Annual Turnover: ?26,644 crore
  • Profit After Tax (PAT): ?6,412 crore
  • Net Worth: ?49,178 crore

Implications of Navratna Status for IRCTC and IRFC

The grant of Navratna status is a significant milestone for both IRCTC and IRFC, offering them several advantages:

• Operational Autonomy: Both entities can now make larger investments independently, enhancing their capabilities to drive further growth and development.
• Business Expansion: The status will facilitate the ability to enter into joint ventures, partnerships, and alliances, both within India and internationally.
• Enhanced Market Credibility: This recognition will likely attract more investors and strategic partners, boosting the financial health and market standing of IRCTC and IRFC.