The Indian Railway Catering and Tourism Corporation Limited (IRCTC) and Indian Railway Finance Corporation Limited (IRFC) have been granted the prestigious Navratna status, marking a significant milestone. On March 3, 2025, the government upgraded both companies to the Navratna category of Central Public Sector Enterprises (CPSEs).
With this upgrade, both companies will gain financial autonomy, enabling them to make investments up to ₹1,000 crore without needing prior government approval. This enhanced freedom will speed up their decision-making processes, allowing them to operate more independently and efficiently, which will ultimately support their growth and development.
Benefits of Navratna Status:
Financial Autonomy: Both companies can now invest up to ₹1,000 crore without needing government approval.
Faster Decision-Making: Investment and other critical decisions will be made more swiftly.
Key Criteria for Navratna and Maharatan Status:
Financial Performance: The company must have strong financial performance, including revenue, profit, and market capitalization.
Management: The company must have skilled and efficient management.
National Importance: The company must contribute significantly to the country’s economy.
Government Ownership: The government must hold at least 51% of the company’s shares.
Performance of IRCTC and IRFC:
IRCTC: In the third quarter (October-December) of the financial year 2024-25, the company reported a 14% increase in profit, which rose to ₹341 crore.
IRFC: Similarly, IRFC has a strong financial position, qualifying for the Navratna status.
The elevation of both companies to Navratna status will improve their operational efficiency and decision-making capabilities, enabling them to strengthen their business activities and pursue further growth.
About IRCTC:
The Indian Railway Catering and Tourism Corporation (IRCTC) is a Mini Ratna (Category-I) public sector enterprise under the Ministry of Railways, Government of India. It was established on September 27, 1999, as a subsidiary of Indian Railways.
IRCTC’s primary goal is to manage catering and hospitality services at railway stations, trains, and other locations. It also promotes domestic and international tourism through the development of budget hotels, special tour packages, information and commercial publicity, and a global reservation system. IRCTC’s corporate office is located in New Delhi.
Shashi Rai
