In News:

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.

In News:

Recently, the Director-General of the Food and Agriculture Organization (FAO) inaugurated the third Hand-in-Hand Investment Forum.

Purpose and Goals

• Objective: To accelerate the transformation of agrifood systems to address global challenges:
  • Eradicate poverty (SDG 1)
  • End hunger and malnutrition (SDG 2)
  • Reduce inequalities (SDG 10)
• Target: Focuses on improving the lives of poor and vulnerable populations by:
  • Raising incomes
  • Enhancing nutritional status and overall well-being
  • Strengthening resilience to climate change

Key Features of the HIH Initiative

• Launched: 2019 as a flagship program by the Food and Agriculture Organization (FAO).
• Primary Focus Areas:
  • Geospatial and analytics-driven approach: Utilizes advanced geospatial modeling, biophysical, socio-economic data, and analytics to identify key territories for intervention.
  • Market-based transformation: Aims to create sustainable, market-based solutions for agricultural development and food systems transformation.
  • Value Chain Development: Focus on developing value chains for priority commodities to boost incomes and food security.
  • Agro-Industry Building: Strengthening agro-industries and introducing efficient water management and precision agriculture systems.
  • Digitalization: Introducing digital services for better agricultural planning and productivity.

Key Areas of Intervention

• Agricultural Transformation: Identifying territories with the highest potential for transformation.
• Sustainable Management: Focus on sustainable practices in forestry, fisheries, and land management.
• Climate Resilience: Building systems to mitigate the effects of climate change and reduce vulnerability.
• Food Loss Reduction: Addressing food losses and waste across agricultural value chains.

Global Participation

• Member Countries: 72 countries have joined the initiative, collaborating on shared goals for agrifood systems transformation.

The Hand-in-Hand Investment Forum

• Purpose: A platform to mobilize investments for the successful implementation of agrifood transformation programs under the HIH initiative.
• Event: The third Hand-in-Hand Investment Forum was recently opened by the FAO Director-General to discuss challenges and solutions for global agrifood system transformation.

About the Food and Agriculture Organization (FAO)

• Established: October 1945, it is the oldest permanent specialized agency of the United Nations.
• Mandate:
  • Improve nutrition.
  • Increase agricultural productivity.
  • Raise the standard of living in rural areas.
  • Contribute to global economic growth.
• Headquarters: Rome, Italy.
• Members: 194 Member States and the European Union.

Key Role of FAO:

• FAO leads international efforts to combat hunger and malnutrition worldwide.
• Supports member countries in implementing agricultural and food security programs.

Strategic Importance

• The Hand-in-Hand Initiative is integral to FAO’s mandate, focusing on countries with the most pressing needs due to poverty, hunger, or crises (natural or man-made).
• It enhances cooperation among nations to tackle global food security challenges, with a particular emphasis on countries with limited national capacities.