Navratna Companies in India
By : Neha Dhyani
Updated : Feb 8, 2022, 8:51
Navratna companies in India are a group of Central Public Sector Enterprises (CPSEs) that the Government of India has enhanced financial autonomy. They have the freedom to invest an amount of up to ₹1,000 crores without requiring explicit government approval. They may even invest 15% of their net worth on a particular project or 30% of their net worth during the whole year, but without exceeding the ₹1,000 crores limit. Due to the greater autonomy, these companies enjoy comparative advantages when competing in the global market.
The government first awarded Navratna status to nine public sector undertakings (PSUs) in 1997. Over the years, the Navratna company list has expanded. For a PSU to be included in this list, it must fulfill the Navratna companies criteria of eligibility, which includes the conditions mentioned below:
- The company must have a 60 out of 100, based on six parameters. These parameters include net worth, net profit, the total cost of production, total manpower cost, cost of services, capital employed, PBDIT (Profit Before Depreciation, Interest, and Taxes), etc.
- The company must have the status of a Miniratna, and there should be four independent board directors.
List of Navratna Companies in India - 2022
At present, the Navratna company list includes 14 companies. Here is the complete list of Navratna companies in India:
14 Navratna Companies in India
Bharat Electronics Limited (BEL)
Container Corporation of India (CONCOR)
Engineers India Limited (EIL)
Hindustan Aeronautics Limited (HAL)
Mahanagar Telephone Nigam Limited (MTNL)
National Aluminium Company (NALCO)
National Buildings Construction Corporation (NBCC)
National Mineral Development Corporation (NMDC)
NLC India Limited (Neyveli Lignite)
Oil India Limited (OIL)
Rashtriya Ispat Nigam Limited (RINL)
Rural Electrification Corporation (REC)
Shipping Corporation of India (SCI)
Power Finance Corporation Limited
India's Navratna Company List - Overview
- Bharat Electronics Limited (BEL): BEL is a government-owned defence and aerospace electronics company.
- Container Corporation of India (CONCOR): CONCOR operates several core functions for Indian Railways, including cargo carrier, warehouse operator, MMLP operation, and terminal operator.
- Engineers India Limited (EIL): EIL provides a varied range of engineering consultancy & EPC services in various areas, such as petroleum refining, mining & metallurgy, etc.
- Hindustan Aeronautics Limited (HAL): HAL is one of the world's largest and oldest defence and aerospace manufacturers.
- Mahanagar Telephone Nigam Limited (MTNL): MTNL is a telecommunications service provider that provides services for fixed-line telephones, WLL, etc.
- National Aluminium Company (NALCO): NALCO operates in metal, power, and mining. It is among the largest integrated Bauxite-Alumina-Aluminium-Power Complex in India.
- National Buildings Construction Corporation (NBCC): NBCC is a blue-chip government corporation that operates in the segments of real estate development, Project Management Consultancy (PMC), and Engineering, Procurement & Construction (EPC).
- National Mineral Development Corporation (NMDC): NMDC is a government-owned mineral producer involved in exploring copper, limestone, diamond, gypsum, etc. It is the largest producer and exporter of iron ore in India.
- NLC India Limited (NLC): NLC is producing Lignite from opencast mines in Tamil Nadu and Rajasthan.
- Oil India Limited (OIL): OIL is involved in the exploration, production, and development of natural gas and crude oil, along with the production of liquid petroleum gas and the transportation of crude oil.
- Rashtriya Ispat Nigam Limited (RINL): RINL is a government-owned steel producer that operates a steel plant in Visakhapatnam, producing 7.3 million tonnes per annum.
- Rural Electrification Corporation (REC): REC is a public Infrastructure Finance Company that finances power projects across India.
- Shipping Corporation of India (SCI): SCI manages and operates vessels that serve both international and national lines.
- Power Finance Corporation Ltd is one of the leading power sector public financial institutions and a non-banking financial company providing fund and non-fund-based support for the development of the Indian power sector.
Navratna companies in India have certain investment benefits. Due to their financial autonomy, these companies enjoy an advantageous edge when competing in the global market.
FAQs on Navratna companies in India
How many Navratna companies in India do we have at present?
At present, we have 14 Navratna companies in India.
How much can Navratna companies invest without seeking government approval?
Navratna companies can invest up to ₹1,000 crores without government approval.
Does a company need to be a Miniratna before becoming a Navratna?
Yes, a company needs to be a Miniratna before becoming a Navratna.
Is BEL (Bharat Electronics Limited) is under the Navratna companies list or Maharatna companies list in India?
As per the government guidelines, Bharat Electronics Limited will come under Navratna companies in India.