A Navratna company is basically a public sector company, which has been playing a significant role in growing the national economy. After four new Central Public Sector Enterprises (CPSE) received the Navratna status on August 30, 2024, now all together there are 25 Navratna companies in India. These companies are operating in different fields like: energy, engineering, telecommunications…
Owing to their added financial freedom, Indian Navratna companies are different from other Public Sector Units (PSUs). In the sense, their financial autonomy allows them to invest up to Rs. 1,000 crores without seeking explicit government permission. There are some other powers too that they enjoy – (say) for example – they are allowed to invest up to 15% of their net wealth in a single project or 30% of their net worth over a year.
As per the government’s guideline, there are certain criteria that are to be fulfilled to attain the status of Navratna that include: i) The CPSE has to be a Miniratna Category-I CPSE for at least three years. ii) The company has to produce a consistent track record of profitability, net worth and turnover. iii) It should have a positive net worth for the last three years. iv) The CPSE has to earn a net profit in the previous three years. v) It should have a significant global presence or international operations. vi) The enterprise’s performance should demonstrate its ability to compete in the global market. vii) It should have a good corporate governance framework and comply with regulatory requirements. viii) The CPSE should have a satisfactory rating from the Department of Public Enterprises (DPE).
Power sector companies that recently became Navratna
The Government of India initiated the recognition in the year 1997. There are many CPSEs from the Indian power sector who received Navratna status, and then elevated to the rank of Maharatna. Up to July 2024, CPSEs like Bharat Electronics Limited (BEL), Neyveli Lignite Corporation Limited etc., held the status of Navratna. On August 30 (this year), three companies – namely Solar Energy Corporation of India Limited (SECI), NHPC Limited and SJVN Limited – have entered the list of Navratna companies.
Brief about the new Navratna companies
Solar Energy Corporation of India Limited
Solar Energy Corporation of India Ltd was incorporated in the year 2011 as a not-for-profit company (Sec. 25 of Companies Act, 1956) and converted to a commercial company in 2015 (Sec. 3 of Companies Act, 2013).
SECI is the leading CPSU dedicated to the development and expansion of Renewable Energy (RE) capacity in India. As a step towards achieving national and international commitments, SECI has been named one of the Renewable Energy Implementing Agencies (REIAs) of India, which is continuously working towards fulfilling these goals and striving for sustainable development.
The organization has been facilitating market development and creating an ecosystem for RE by conceiving/prototyping/modeling/policy advocacy with innovative project configurations, such as Solar-Wind hybrid with/without energy storage, Round the Clock (RTC) power supply, RE with assured peak power supply, Firm and Dispatchable RE (FDRE) etc. These initiatives have been undertaken as part of various government schemes and SECI’s own initiatives, to provide RE towards meeting the ever-growing energy requirements of the nation.
Completing its 13 years of incorporation, today SECI has a cumulative generation awarded capacity of 69.25 GW and an annual power trading volume upwards of 42 billion units. The company is the foremost Renewable Energy Implementing Agency (REIA) of India that is continuously working towards fulfilling climate goals and striving for sustainable development.
R. P. Gupta, Chairman & Managing, Director, SECI
SECI has posted a consolidated annual turnover of Rs. 13,118.68 Crore registering an increase of 20.85% over the previous year and Profit After Tax (PAT) of Rs 510.92 Crore registering a growth 34.89% in the Financial Year 2023-24.
Now, classified as a Navratna CPSE enables SECI towards enhanced autonomy in financial and operational matters and will accelerate the company’s growth path through better agility, improved geographical presence and technology focus. This is yet another marker of the government’s focus on India’s transition towards sustainable energy.
NHPC Limited
NHPC Limited is the largest hydropower development organization in India, with capabilities to undertake all the activities from conceptualization to commissioning of hydro projects. NHPC has also diversified in the field of Solar, Wind energy development etc.
NHPC Ltd. was formerly known as National Hydroelectric Power Corporation Ltd. The company was incorporated in 1975 under Companies Act, 1956. It is mandated to plan, promote and organize an integrated and efficient development of power in all its aspects through Conventional and Non-Conventional Sources in India and abroad.
Raj Kumar Chaudhary, Chairman & Managing, Director, NHPC
Currently, NHPC’s total installed capacity is 7,144.20 MW and the company is presently engaged in the construction of projects aggregating to 10,442.70 MW. These include the 2,000 MW Subansiri Lower project (Assam/ Arunachal Pradesh) and 2,880 MW Dibang Multi-purpose project (Arunachal Pradesh). At present, NHPC is working on more than 50,000 MW capacity projects, which are under various stages of development. The company is steadfastly working towards achieving an installed capacity of 23,000 MW by 2032 and 50,000 MW by 2047.
The conferring of Navratna status brings forth key advantages to NHPC. It will enable faster decision-making, increase efficiency and empower employees. It will support major CAPEX and investment plans, drive growth, expand market reach and achieve long-term gains. NHPC will have enhanced powers to establish joint ventures and overseas offices, access new markets and leverage local expertise. Additionally, it will foster innovation by furthering technological alliances and strengthening market positioning. It will also facilitate mergers and acquisitions leading to growth and increased market share.
Commenting on their receipt of the Navratna status, Raj Kumar Chaudhary, Chairman & Managing Director, NHPC, CMD, NHPC, said, “This is a truly historic moment for the NHPC family and recognition of our remarkable financial and operational accomplishments.”
He expressed gratitude on behalf of the NHPC family to the Ministry of Power for their unwavering trust in NHPC and their support that has resulted in conferring Navratna status to NHPC by Government of India. Chaudhary also added, “NHPC has been an important player in the Indian power sector and has played a key role in tapping the hydropower potential of the country. We are a complete green power company which has also diversified in wind and solar energy options.”
SJVN Limited
SJVN, formerly known as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking. SJVN was accorded the coveted Miniratna status in 2008. Currently, SJVN boasts a project portfolio of 56,802.4 MW, with thirteen projects totaling 2,466.5 MW of installed capacity under operation and 75 projects under various stages of implementation across hydro, solar, wind, thermal, and transmission lines. The company established in 1988 as a joint venture between the Government of India and the Government of Himachal Pradesh, has grown into a multi-faceted power entity with operations across India and Nepal.
SJVN has been conferred with prestigious Navratna status by Department of Public Enterprises, Government of India. This prestigious recognition, making the company 25th Navratna of India, marks a momentous milestone in SJVN’s 36-year- journey.
Sushil Sharma, Chairman & Managing, Director, SJVN
Celebrating receipt of the honour, Sushil Sharma, Chairman & Managing Director, SJVN has expressed his heartfelt gratitude for visionary leadership of Prime Minister Narendra Modi in witnessing this historical day. He has expressed gratefulness for continuous guidance and unwavering support of Finance Minister Nirmala Sitharaman and Power Minister Manohar Lal. Sharma also extended special thanks to the Government of Himachal Pradesh for always assisting the company as an Equity Partner.
SJVN can now make investment on its projects without any financial ceiling, thereby accelerating the growth path of the company. Additionally, the company can invest up to 30% of its net worth annually, further fueling its ambitious expansion plans. This enhanced autonomy also allows SJVN to form joint ventures, set up overseas subsidiaries and undertake organizational restructuring to optimize its operations.
Commenting on the Navratna status, Sushil Sharma, Chairman & Managing Director, SJVN, said, “The Navratna status is conferred upon select CPSEs that have consistently demonstrated exceptional financial performance and managerial efficiency. This will allow us greater financial and operational freedom to further our business interests and contribute to nation’s energy security. The Navratna status not only recognizes SJVN’s past achievements but also sets the stage for us to undertake larger projects, form strategic partnerships and contribute more significantly to government’s vision of achieving 500 GW of renewable energy capacity by 2030.”
By P. K. Chatterjee (PK)
