Did you know that in June 2024, Mazagon Dock Shipbuilders Ltd. was added to the Navaratna company list? It was awarded the ‘Navratna’ status in India, taking the count to 21 such companies.
Let’s understand what Navaratna companies are and how they contribute to our economy. But before that, let us know what the different types of CPSEs are.
What Are The Different Types Of CPSEs?
Central Public Sector Enterprises (CPSEs) in India are categorised into three types based on their financial and operational autonomy and performance- Maharatna, Navratna and Miniratna.
1. Maharatna CPSEs
This status is granted to large CPSEs. These enterprises have higher autonomy in making investment decisions. Without government approval, they can invest up to 15% of their net worth in a single project.
2. Navratna CPSEs
Navratna status is given to CPSEs that primarily have Miniratna Category-1 status and achieve consistent high-performance ratings. They enjoy financial autonomy, allowing them to invest up to ₹1000 crore or 15% of their net worth on a single project, whichever is lower and up to 30% of their net worth in a year.
In July 1997, the Government of India identified nine Central Public Sector Enterprises (CPSE) as ‘Navaratnas’. They were Bharat Heavy Electricals Limited (BHEL), Bharat Petroleum Corporation Limited (BPCL), Gas Authority of India Limited (GAIL), Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation (IOC), Mahanagar Telephone Nigam Limited (MTNL), National Thermal Power Corporation (NTPC), Oil and Natural Gas Corporation (ONGC) and Steel Authority of India Limited (SAIL).
3. Miniratna CPSEs
These enterprises are further divided into two categories: Category I and II. Miniratna Category-I CPSEs must have made a profit in the last three years, with a significant profit in at least one year. On the other hand, Miniratna Category-II CPSEs need to be profitable for the previous three years and maintain a positive net worth.
What Is A Navaratna Company?
The term “Navaratna” means “nine gems” in Sanskrit, symbolising the best among the public sector companies. The government grants These companies autonomy, allowing them to make large investments and manage their operations independently.
Navaratna companies play an important role in India’s economy, spread across various sectors like energy, infrastructure and telecommunications. They are allowed to invest up to ₹1,000 crore or 15% of their net worth on a single project, whichever is lower and up to 30% of their net worth in a year. They can do all this without the approval from the central government, unlike other companies in their industries.
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List of Navaratna Companies in India 2024
As of 2024, there are 21 Navaratna companies in India. Here’s the complete list:
1. Bharat Electronics Limited (BEL)
BEL is a defense and aerospace electronics company in India, established in 1954. It operates under the Ministry of Defence and is headquartered in Bangalore. BEL produces a range of products, including electronic systems, radar systems, communication systems and more.
2. Container Corporation of India Limited (CONCOR)
CONCOR is a container rail corporation in India, established in 1988. It is a central public sector undertaking under the Ministry of Railways. It is responsible for managing the country’s inland container terminals and has a huge presence in the international container market.
3. Engineers India Limited (EIL)
EIL is a Schedule “A” Public Sector Undertaking (PSU) of the Ministry of Petroleum and Natural Gas, under the Government of India. Established in 1965, EIL is an engineering consultancy and project management company. The corporation provides services in areas such as process engineering, design engineering, project management, commissioning, operation and maintenance.
4. Hindustan Aeronautics Limited (HAL)
HAL is a public-sector undertaking in India. Established in 1940, it is one of the largest aerospace companies in Asia. HAL is responsible for the design, manufacture and maintenance of various aerospace products, including fighter jets, transport aircraft, helicopters and satellites. The company is also involved in the redevelopment of existing air bases and the design and development of new air bases.
5. Mahanagar Telephone Nigam Limited (MTNL)
MTNL is a state-owned telecommunications company in India. Founded in 1986, MTNL provides various telecommunication services, including landline, mobile and internet services, to customers in the Delhi and Mumbai metropolitan areas. It is one of the largest telecom operators in India.
6. National Aluminium Company Limited (NALCO)
NALCO is an Indian aluminium manufacturing company. Established in 1981, it is a Navratna company under the Ministry of Mines, Government of India. NALCO’s primary operations include bauxite mining, alumina refining and smelting of primary aluminum. The company has three main units: Ranipur, Angul, and Damanjodi. NALCO is one of the largest integrated aluminium complexes in Asia, with a capacity to produce over 23,00,000 tonnes of alumina and 3,30,000 tonnes of smelter-grade alumina annually. The company is headquartered in Bhubaneswar, Odisha, India.
7. National Buildings Construction Corporation Limited (NBCC)
NBCC is a blue-chip company under the Ministry of Housing and Urban Affairs, Government of India. Established in 1960, it is one of the largest construction companies in India, catering to various sectors including housing, commercial, institutional, and infrastructure projects. NBCC is responsible for executing government projects, such as the Indian Parliament Complex and the Jawaharlal Nehru Stadium.
8. Neyveli Lignite Corporation Limited (NLC)
NLC is an Indian public sector undertaking company that specialises in the mining and generation of lignite-based electricity. It was established in 1956 and was headquartered in Neyveli, Tamil Nadu. NLC is a major producer of lignite coal in the country. The company also offers services in the areas of coal mining, thermal power generation and coal-based chemical production.
9. National Mineral Development Corporation Limited (NMDC)
NMDC is a government of India-owned mineral producer and trader of iron ore. Established in 1956, NMDC is India’s largest producer of iron ore, magnesium chloride and other minerals. The corporation operates several mines across the country.
10. Rashtriya Ispat Nigam Limited (RINL)
RINL is an Indian steel-making company. It was founded in 1982. RINL operates the Visakhapatnam Steel Plant in Andhra Pradesh, which is one of the largest integrated steel plants in the country. RINL is a major contributor to the Indian steel industry’s growth and development.
11. Shipping Corporation of India Limited (SCI)
SCI is a leading shipping company in the country, established in 1948. It is a Navratna PSU, governed by the Indian government. The corporation operates a fleet of vessels, including tankers, cargo ships, passenger ships and coasters, transporting goods and passengers across the globe. With a strong presence in the international shipping industry, the company has a significant presence in the Suez and Panama canals.
12. Rail Vikas Nigam Limited (RVNL)
RVNL is a Navratna company under the Ministry of Railways, Government of India. It was incorporated in 2003 to meet the country’s growing infrastructure needs. It undertakes project execution for the Ministry of Railways and creates project-specific special purpose vehicles (SPVs). Its corporate office is located in New Delhi, and it functions as an extended arm of the Ministry of Railways.
13. ONGC Videsh Ltd (OVL)
OVL is a subsidiary of Oil and Natural Gas Corporation (ONGC), an Indian state-owned oil and gas company. It is responsible for India’s overseas oil and gas exploration and production activities. Its headquarters are in New Delhi.
14. Rashtriya Chemicals & Fertilisers Limited (RCF)
RCF is an Indian public sector fertiliser company based in Mumbai, India. Founded in 1978, the organisation is a joint venture between the government of India and the Maharashtra state government. RCF is a leading manufacturer of nitrogen, phosphorus and potassium-based fertilisers.
15. IRCON International Limited
IRCON is a Government of India Undertaking, established on February 28, 1976. It is a PSU under the Ministry of Railways, responsible for executing railway projects, both in India and abroad. The company’s primary focus is on infrastructure development, particularly in the railway sector.
16. Rail India Technical and Economic Services (RITES) Limited
RITES is a leading transport infrastructure and project implementation company in India. The company was established in 1974 as a Government of India Undertaking. RITES offers consultancy services in transportation, urban planning, infrastructure development and project management.
17. National Fertilisers Limited (NFL)
NFL is an Indian public sector fertiliser manufacturing company. It was established in 1974 and has its headquarters in New Delhi, India. It manufactures a range of fertilisers, including urea, ammonium nitrate and complex fertilisers.
18. Central Warehousing Corporation (CWC)
CWC is a premier warehousing company in India, established in 1957. It provides modern warehousing facilities, storage and logistics services to various industries, including agriculture, food, pharmaceuticals and more. Its primary objective is to ensure fair price realisation and stability in the farm gate prices of agricultural produce.
19. Housing & Urban Development Corporation Limited (HUDCO)
HUDCO is a leading CPSE in India, founded in 1970 to provide financial assistance to individuals and organisations involved in urban infrastructure development. It focuses on facilitating affordable housing, slum redevelopment and urban renewal projects.
20. Indian Renewable Energy Development Agency Limited (IREDA)
IREDA is a 100% Government of India-owned non-banking financial institution that provides financial assistance for projects related to renewable energy. Established in 1986, IREDA aims to promote and develop the renewable energy sector in India by providing viable financial solutions.
21. Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited is the newest addition to the Navratna company list. It is a shipbuilding facility in India, established in 1778. Its headquarter is in Mumbai and it is one of the oldest and largest shipyards in Asia. It has built various types of ships, including warships, submarines and commercial vessels. It has also built several Indian Navy submarines and has been involved in export-heavy engineering and construction projects.
Wrapping Up
Navaratna companies in India are a select group of CPSEs that have been granted greater financial and operational autonomy by the government. Such companies are important to India’s economic development. While some might see their success as a benchmark for the performance and potential of Indian CPSEs, others aim to become Maharatna companies in future.
FAQs
What is a Navaratna company in India?
A Navaratna company in India is a public sector enterprise recognised for its strong financial performance and given significant autonomy by the government to manage its operations and investments.
How many Navaratna companies are there in India?
As of 2024, there are 21 Navaratna companies in India.
How does a company become a Navaratna?
To become a Navaratna, a company must first achieve Miniratna Category I status, have a strong financial track record and meet specific criteria set by the government of India.
What is the difference between Navaratna and Maharatna companies?
Maharatna companies have more autonomy and can invest up to ₹5,000 crore in a project, while Navaratna companies can invest up to ₹1,000 crore without government approval.
Which is the newest Navaratna company in India?
As of 2024, the newest Navaratna company is Mazadon Dock Shipbuilders Limited.
Can a Navaratna company lose its status?
Yes, if a Navaratna company fails to meet the required performance standards or financial criteria, it can lose its Navaratna status.
Are Navaratna companies listed on the stock exchange?
Yes, most Navaratna companies are listed on major Indian stock exchanges like the BSE and NSE.
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