The Modi government has granted Navratna status to two significant Public Sector Undertakings (PSUs): IRCON International Ltd. and RITES Ltd. These enterprises fall under the administrative purview of the Ministry of Railways and officially announced their Navratna status on Thursday, October 12.
Under the designation of “Navratna,” state-run enterprises are empowered to invest up to Rs 1,000 crore without explicit government approval. Consequently, IRCON and RITES have joined the esteemed ranks as the 15th and 16th Central Public Sector Enterprises (CPSEs) to attain the prestigious “Navratna” status.
The distinguished roster of the prior 14 CPSEs with this coveted designation includes Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, Oil India, PFC, Rashtriya Ispat Nigam, REC, and the Shipping Corporation of India.
To qualify for “Navratna” status, a company must consistently record a net profit exceeding Rs 5,000 crore for three consecutive years, maintain an average annual turnover of Rs 25,000 crore over three years, or demonstrate an average annual net worth exceeding Rs 15,000 crore for three years.
It is worth noting that IRCON currently lacks a leader following the recent departure of Yogesh Kumar Mishra. The Public Enterprises Selection Board (PESB) has initiated the process of shortlisting candidates for the Chief Managing Director (CMD) position. On the other hand, RITES is currently under the leadership of Rahul Mithal as its CMD.
IRCON International specializes in infrastructure construction services encompassing projects such as roads, highways, bridges, airports, mass rapid transit systems, and commercial buildings. In contrast, RITES offers expertise in transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, and related services.
