The government on Monday granted 'Navratna' status to two railway companies, the Indian Railway Catering and Tourism Corporation (IRCTC) and the Indian Railway Finance Corporation (IRFC). This means that IRCTC is now the 25th, and IRFC the 26th, public sector company to receive this status. The new status gives these companies more financial freedom, allowing them to invest up to Rs 1,000 crore without needing government approval. This move is expected to help them make decisions faster and improve their overall efficiency.

What is the meaning of Navratna's status?

The Indian government divides public sector companies into three groups based on how well they perform: Maharatna, Navratna, and Miniratna. Navratna status is given to companies that meet certain standards, which lets them invest and expand with more freedom.

Navratna companies can invest up to Rs 1,000 crore or 15% of their net worth in a single project without needing government approval. They can also grow their business more easily, form joint ventures, and sign technology or marketing deals on their own.

This status is meant to make public companies more competitive and independent. IRCTC, established in 1999 under the Ministry of Railways, handles online ticket booking, catering, and tourism for Indian Railways. In 2023-24, IRCTC had a turnover of Rs 4,270.18 crore and a net worth of Rs 3,229.97 crore. 

With Navratna status, IRCTC can expand its services more freely. IRFC, set up in 1986, raises funds for railway projects. Other companies with Navratna status include MTNL and RVNL.

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