Government has approved the upgradation of Indian Railway Catering and Tourism Corporation (IRCTC) & Indian Railway Finance Corporation (IRFC) as Navratna companies. IRCTC has become 25th & IRFC 26th #Navratna company among CPSEs.
Union Minister of Railways Ashwini Vaishnaw congratulated team IRCTC and IRFC on their feat of being upgraded to the Navratna status. Minister says, “We are happy to share that all the 7 listed PSUs of Railways are now Navratna status and this has happened after 2014. CONCOR : July 2014, RVNL: May 2023, IRCON and RITES in Oct 2023, Railtel: Aug 2024 and now IRCTC and IRFC . This is a major achievement and this reflects our Hon’ble PM Shri Narendra Modi ji’s very focussed attention on transforming Railways.” He also thanked the Hon’ble Finance Minister on this occasion.
IRCTC:
IRCTC is a Ministry of Railways CPSE with an annual turnover of ₹4,270.18 Cr, has a Profit after Tax, ie PAT of ₹1,111.26 Cr and a net worth of ₹3,229.97 Cr for FY 2023-24. IRFC is also a Ministry of Railways CPSE with an annual turnover of ₹26,644 Cr, PAT of ₹6,412 Cr and a net worth of ₹49,178 Cr for FY 2023-24.
The Navratna recognition marks a momentous achievement as IRCTC is celebrating 25 years of excellence in catering, tourism, and online ticketing services in 2025. This is a testament to the operational excellence of the Corporation in the Hospitality, Travel & Tourism Sector achieved over the years.
Navratna PSUs play a crucial role in nation building by driving economic growth through enhancing India’s position in the global competitive market. The upgraded status allows IRCTC to expand its footprint and enhance its service offerings in the travel, tourism and hospitality sectors.
IRFC:
Indian Railway Finance Corporation (IRFC), a key financial institution under the Ministry of Railways, has been awarded the prestigious Navratna status by the Government of India. This recognition marks a significant milestone in IRFC’s journey as one of the Central Public Sector Enterprises (CPSE) supporting India’s railway infrastructure.
Established on December 12, 1986, as a 100% government-owned entity, IRFC has been instrumental in financing the expansion and modernization of Indian Railways. With a revenue of over Rs 26,600 crore and a profit after tax exceeding Rs 6,400 crore as of March 31, 2024, IRFC is now the third-largest government NBFC in India.
Benefits of Navratna Status:
Navratna PSUs enjoy several advantages, such as:
Financial Autonomy
- They can form joint ventures and subsidiaries and enter into mergers or acquisitions without needing direct government intervention.
Operational Freedom
- They can make independent business and investment decisions, enabling them to compete with private sector companies.
- They have greater flexibility in HR management, including hiring professionals at market-linked salaries.
Global Expansion
- They can enter international markets, form strategic alliances, and expand globally without strict bureaucratic constraints.
Better Market Position
- Navratna companies are considered financially stable and attract more investor confidence.
- Their strong financial performance allows them to generate better returns for shareholders.
