NHPC, SJVN, and RailTel, three major public sector companies in India, have been given the prestigious “Navratna” status by the Government of India. This makes them the 18th, 19th, and 20th companies to earn this special title. This status is a significant achievement for these companies, giving them more freedom and power to make decisions and expand their operations.

What is Navratna Status?

Navratna status is a prestigious title given by the Government of India to select public sector companies. It’s like a reward for companies that have shown excellent performance over time. This status gives these companies more freedom to make decisions and expand their operations without needing as much government approval.

Why is it Important?

For NHPC, SJVN, and RailTel, getting Navratna status is a big achievement. It recognizes them as top-performing companies in the public sector. With this status, they now have more power to make decisions about investments and growth, which can help them become even more successful.

What are the Eligibility Criteria?

To earn Navratna status, a company must meet certain conditions:

1. Miniratna-I Status: The company should already have Miniratna-I status, which is given to profitable public sector companies that have been doing well for a while.
2. Excellent Performance: The company must have received an “Excellent” or “Very Good” rating in its performance evaluation for at least three of the last five years.
3. Strong Financial Performance: The company must score at least 60 points across six key financial indicators, such as Net Profit, Net Worth, and Earnings Per Share.

What Benefits Come with Navratna Status?

Navratna status gives NHPC, SJVN, and RailTel more freedom to make investment decisions. Here’s what they can do:

• Investment Autonomy: These companies can now invest up to ₹1,000 crore or 15% of their net worth in a single project without asking for government approval. They can also invest up to 30% of their net worth in a year, as long as it doesn’t exceed the ₹1,000 crore limit.
• Expanded Operational Capabilities: The companies can now set up subsidiaries in other countries, form joint ventures with other companies, and restructure their organizations to improve efficiency and performance.

Overview of the Companies

• SJVN (Satluj Jal Vidyut Nigam Limited): SJVN manages a wide range of energy projects, including hydroelectric, solar, and wind power. It has a total capacity of 56,802 MW across 75 projects.
• NHPC (National Hydroelectric Power Corporation): NHPC, established in 1975, is one of India’s leading hydropower companies. It currently has an installed capacity of 7,144.2 MW and plans to increase this to 23,000 MW by 2032 and 50,000 MW by 2047.
• RailTel: RailTel, set up in 2000, provides telecom infrastructure and broadband services across India. It manages over 55,000 kilometers of optical fiber networks along railway tracks and supports government initiatives like Smart Cities and e-governance.

Even though receiving Navratna status is a positive development, the shares of SJVN, NHPC, and RailTel have recently declined. SJVN and NHPC shares are down by 18%, and RailTel shares are down by 21% from their all-time highs.