Centre upgrades IRCTC and IRFC to Navratna status

The centre has upgraded Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to Navratna status. The move allows the two central public sector enterprises (CPSEs) to make discretionary investments up to Rs 1,000 crore or 15% of their net worth. Both come under the administrative control of the Railway Ministry.

ET reported in January this year that IRCTC’s upgrade to Navratna status was being mulled.

An official statement said IRCTC is the 25th Navratna among CPSEs. It has an annual turnover of Rs 4,270.18 crore, profit after tax (PAT) of Rs 1,111.26 crore and a net worth of Rs 3,229.97 crore for financial year 2023-24. IRFC will be India’s 26th Navratna. It has an annual turnover of Rs 26,644 Cr, PAT of Rs 6,412 crore and a net worth of Rs 49,178 Cr for fiscal 2023-24.

The conferring of Navratna status allows faster decision-making, and increased efficiency. It is expected to support major capital expenditure (CAPEX) and investment plans, drive growth, expand market reach and achieve long-term gains.

IRCTC and IRFC 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. This will also facilitate mergers and acquisitions leading to growth and increased market share.