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.
• Criteria for Navratna status
  • A Public Sector Unit (PSU) should be a Miniratna-I, Schedule 'A' company, should have obtained an 'excellent' or 'very good' MoU rating in three of the last five years, and must have a composite score of 60 in six performance indicators.
  • It must report a net profit of more than Rs 5,000 crore for three consecutive years, and maintain an average annual turnover of Rs 25,000 crore for three years, or have an annual average net worth of over Rs 15,000 crore for three years.
• 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