Govt grants Navratna status to IRCON International Limited
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IRCON International Limited, a prominent turnkey construction firm under the Ministry of Railways, has been promoted to Navratna status, the company said on Thursday. "... it is to inform you that the Department of Public Enterprises has granted IRCON Navratna status in a letter dated October 12, 2023."
Among the CPSEs, IRCON will be the 15th Navratna. "IRCON is a CPSE under the Ministry of Railways with an annual turnover of Rs.10,750 crore and a net profit of Rs.765 crore (on a consolidated basis) and an annual turnover of Rs.10,262 crore and a net profit of Rs.777 crore (on a standalone basis) for the fiscal year 2022-23," IRCON said in a regulatory filing.
Why was IRCON given Navratna status?
All Public Sector Undertakings (PSUs) are classified by the government into three types: Maharatna, Navratna, and Miniratna. To be eligible for Navratna status, a PSU must be a Miniratna-I, Schedule 'A' business, have a 'excellent' or'very good' MoU rating in three of the previous five years, and have a composite score of 60 in six performance parameters.
To be eligible for Navratna status, a corporation must have a net profit of more than Rs 5,000 crore for three consecutive years, an average annual revenue of Rs 25,000 crore for three years, and an annual average net value of more than Rs 15,000 crore for three years.
How will it help IRCON?
The status confers authority on the boards of directors of these CPSEs to sanction mergers and acquisitions in India and overseas. To make foreign investments, they must first obtain clearance from the Cabinet Committee on Economic Affairs (CCEA). In an emergency, the Chief Executive of the PSE has the authority to allow work trips overseas for functional directors of up to five days' duration (other than study tours, seminars, and so on) with notification to the Secretary of the administrative ministry.
Aside from IRCON, India has 15 Navratna PSUs. The companies on the list are Bharat Electronics Limited, Container Corporation of India Limited, Engineers India Limited, Hindustan Aeronautics Limited, Mahanagar Telephone Nigam Limited, National Aluminium Company Limited, National Buildings Construction Corporation Limited, Neyveli Lignite Corporation Limited, NMDC Limited, Rashtriya Ispat Nigam Limited, Shipping Corporation of India Limited, Rail Vikas Nigam Limited, ONGC Videsh Ltd, Rashtriya Chemicals & Fertilizer