In the context of India’s public sector, “Navratna” is a term that signifies excellence, autonomy, and strategic importance. Derived from the Sanskrit word for “nine gems,” Navratna companies are among the most prestigious public sector undertakings (PSUs) in India. These companies have been granted enhanced financial and operational autonomy to compete effectively in the global market, foster innovation, and drive economic growth.
The Navratna status was introduced in 1997 by the Government of India as part of its economic liberalization and public sector reforms. To qualify for this elite status, a PSU must first achieve Miniratna status and then meet specific financial criteria. This includes maintaining a net profit of at least ₹5,000 crore annually for three consecutive years, having an average annual turnover exceeding ₹25,000 crore, or an average annual net worth surpassing ₹15,000 crore over the same period.
Navratna companies enjoy significant autonomy, allowing them to make substantial investments without seeking government approval. They can invest up to ₹1,000 crore or 15% of their net worth in a single project, and up to 30% of their net worth in a year, provided these investments do not exceed ₹1,000 crore. This autonomy extends to forming joint ventures, establishing subsidiaries, and entering into strategic alliances both domestically and internationally.
The 18 Navratna Companies
| 1 | Engineers India Limited (EIL) | |
| 2 | Container Corporation of India Limited (CONCOR) | |
| 3 | Bharat Electronics Limited (BEL) | |
| 4 | Hindustan Aeronautics Limited (HAL) | |
| 5 | Neyveli Lignite Corporation Limited (NLC India) | |
| 6 | Rashtriya Ispat Nigam Limited (RINL) | |
| 7 | Rashtriya Chemicals & Fertilisers Limited (RCF) | |
| 8 | Mahanagar Telephone Nigam Limited (MTNL) | |
| 9 | National Buildings Construction Corporation Limited (NBCC) | |
| 10 | National Aluminium Company Limited (NALCO) | |
| 11 | National Mineral Development Corporation Limited (NMDC) | |
| 12 | Rail Vikas Nigam Limited (RVNL) | |
| 13 | Shipping Corporation of India Limited (SCI) | |
| 14 | ONGC Videsh Limited (OVL) | |
| 15 | RITES Limited | |
| 16 | IRCON International Limited | |
| 17 | IREDA Limited | |
| 18 | Mazagon Dock ShipBuilders Limited |
Impact of Navratna Status
The Navratna status empowers these companies to operate with greater independence, enabling them to make strategic decisions swiftly and efficiently. This autonomy has led to increased competitiveness, innovation, and financial performance. By allowing these PSUs to form joint ventures and enter international markets, the Navratna status has also facilitated knowledge transfer, technological advancements, and global partnerships.
Moreover, the enhanced financial capabilities have enabled these companies to invest in research and development, modernize infrastructure, and expand their operations. This has not only bolstered their growth but also contributed significantly to the nation’s economic development.
Navratna companies represent the pinnacle of excellence in India’s public sector, driving economic growth, innovation, and global competitiveness. The recent inclusion of Mazagon Dock Shipbuilders Limited as the 18th Navratna company
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