Daijiworld Media Network - New Delhi
New Delhi, Mar 3: In a major development, the Indian Railway Catering and Tourism Corporation (IRCTC) and the Indian Railway Finance Corporation (IRFC) have been elevated to the prestigious Navratna status within the Central Public Sector Enterprises (CPSE) category. The move, announced by the Department of Public Enterprises on Monday, comes in recognition of the companies’ strong performance in key financial indicators such as net profit and net worth, meeting the necessary criteria for eligibility.
As Navratna CPSEs, both companies are now granted enhanced autonomy, particularly in their financial decision-making. This new status allows them to invest up to Rs 1,000 crore without requiring prior approval from the government, a change that is expected to streamline their operations and accelerate growth plans.
With this upgrade, IRCTC and IRFC become the 25th and 26th companies to achieve the Navratna status, joining the ranks of other high-profile companies in this category, such as Bharat Electronics Ltd., Container Corporation of India, and Hindustan Aeronautics Ltd.
Financial Highlights of IRCTC and IRFC
For the fiscal year ending March 31, 2024, IRCTC, which is part of the Ministry of Railways, recorded a turnover of Rs 4,270.18 crore, a net profit of Rs 1,111.26 crore, and a net worth of Rs 3,229.97 crore.
Meanwhile, IRFC, also under the Ministry of Railways, reported a turnover of Rs 26,644 crore, net profit of Rs 6,412 crore, and a net worth of Rs 49,178 crore. These robust financials were cited by the Department of Public Enterprises as key factors in their elevation to Navratna status.
Implications for Growth and Development
The Navratna status will allow IRCTC and IRFC to pursue their respective growth strategies with greater flexibility and independence. The ability to invest larger amounts without seeking government approval is expected to expedite decision-making, especially in infrastructure projects and expansion plans for Indian Railways.
Railway Minister Ashwini Vaishnaw congratulated both companies for their achievement, expressing his appreciation on social media, stating, “Congratulations to team IRCTC and team IRFC on being upgraded to Navratna status.”
Background and Significance
Founded in 1999, IRCTC is responsible for providing ticketing, catering, and tourism services to Indian Railways, and plays a significant role in connecting with millions of consumers. Established in 1986, IRFC manages the fund mobilization for Indian Railways’ infrastructure development and modernization initiatives, a crucial aspect of the sector's growth.
With this new distinction, both companies are poised to play a more prominent role in India’s railway modernization efforts and further strengthen their positions within the Indian economy.
Earlier in 2024, several other companies, including Satluj Jal Vidyut Nigam Ltd., National Hydroelectric Power Corp., and RailTel Corp., were also granted Navratna status. The latest upgrade to IRCTC and IRFC marks a continued effort by the Indian government to foster greater competitiveness and efficiency within the public sector enterprises.