Navratna Status

About Navratna Status:

• The government categorises all Public Sector Undertakings (PSUs) into three categories, namely Maharatna, Navratna, and Miniratna.
• The Government had introduced the ‘Navratna’ scheme in 1997.
• PSUs that have a Miniratna-I status and have obtained an "Excellent" or "Very Good" Memorandum of Understanding (MoU) rating in three out of the last five years and have a composite score of 60 or more in six selected performance indicators , namely,
  • Net Profit to Net Worth
  • Manpower Cost to Total Cost of Production
  • Profit before depreciation, Interest and taxes(PBDIT) to capital employed
  • Profit before Interest and taxes to turnover
  • Earnings Per Share
  • Inter-Sectoral Performance
• Advantages
  • Financial Independence: They invest up to ₹1,000 crore without seeking approval from the central government.
  • Navratna companies are also allowed to invest up to 15% of their net worth on a single project, or 30% of their net worth in a given year, subject to a cap of ₹1,000 crore.
  • To incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling.
  • To enter into technology joint ventures or strategic alliances.

Q1: What is Solar Energy Corporation of India Limited (SECI)?

It is a Central Public Sector Undertaking (CPSU) under the administrative control of the Ministry of New and Renewable Energy (MNRE).It was set up on 20th September 2011 to facilitate the implementation of the National Solar Mission (NSM) and the achievement of targets set therein. It is the only CPSU dedicated to the renewable energy sector.

Source: Solar Energy Corporation of India Ltd (SECI) attains Navratna Status