New Delhi
The government has approved the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to upgrade as Navratna companies. This important achievement was announced by the Department of Public Enterprises through its X post. The post said that IRCTC 25th and IRFC have become 26th Navratna Company.
Union Railway Minister Ashwini Vaishnav congratulated the team of IRCTC and IRFC on getting Navratna status. He said that all 7 listed Railways PSUs have now achieved the status of Navratna, and this achievement has become possible after 2014.
All 7 listed railway PSUs who become Navratna:
Concor: July 2014
RVNL: May 2023
IRcon and Rites: October 2023
Railtel: August 2024
Now IRCTC and IRFC
Describing it as a major achievement, the Railway Minister said that it reflects the complete change and vision on development of the railway under the leadership of Prime Minister Shri Narendra Modi. On this occasion, he also thanked the Union Finance Minister.
IRCTC: Navratna Company of Railways
The IRCTC, which is the Central Public Sector undertaking of the Ministry of Railways, earned an annual turnover of ₹ 4,270.18 crore in the financial year 2023-24, a net profit (PAT) of ₹ 1,111.26 crore, and ₹ 3,229.97 crore.
IRCTC has got the status of Navratna when the company is completing 25 years of its establishment in 2025. This reflects the company’s excellence in catering, tourism and online ticketing services.
With Navratna status, IRCTC will now be able to expand its journey, tourism and hospitality and improve its services.
IRFC: Strong base of railway finance
The Indian Railway Finance Corporation (IRFC), which is a major financial institution under the Ministry of Railways, has been awarded Navratna status by the Government of India.
This status recognizes the strong financial position of IRFC and its contribution to the funding of railway infrastructure.
IRFC was established on 12 December 1986 as a 100% government -owned company. It is playing an important role in the expansion and modernization of Indian Railways.
In the financial year 2023-24, the revenue of IRFC was ₹ 26,644 crore and the net profit (PAT) was ₹ 6,412 crore, while its net assets reached ₹ 49,178 crore.
Today, IRFC has become India’s third largest government non-banking financial company (NBFC).
Benefits of Navratna status
Navratna PSUs get many special rights and autonomy, including:
1. Financial Autonomy
The power to create and merge or acquire a joint ventures, joint ventures without the permission of the government.
2. Operations Freedom
Independent business and investment decision making ability, which makes it easier to compete with private companies.
Flexibility in HR management, allowing the company to recruit professionals at the market rate.
3. Possibility of global expansion
Can enter international markets, perform strategic alliances and expand at global levels.
4. Better market status
Investors get more confidence in the form of financially stable companies.
Strong financial performance can provide more benefits to shareholders.
IRCTC and IRFC will get Navratna status, the possibilities of major financial and operational reforms in the railway sector will increase. This is a major step in the economic and commercial development of Indian Railways and this will give the Railways a better place in global competition.
