Why Are PSU Stocks Railtel, SJVN and NHPC in the Spotlight Today?

Last Thursday, the Government of India (GoI) elevated four state owned companies to Navratna status, marking a significant milestone for these enterprises. The companies that received this prestigious upgrade are Railtel Corporation of India Limited, Solar Energy Corporation of India Limited (SECI), National Hydroelectric Power Corporation Limited (NHPC) and Satluj Jal Vidyut Nigam (SJVN).

The announcement came from the Department of Public Enterprises, Ministry of Finance on Friday via their official account on X (formerly known as Twitter). This upgrade brings the total number of Navratna companies in India from 21 to 25.

Impact of Navratna Status

The newly awarded Navratna status allows these companies greater autonomy, particularly in financial matters. They can now undertake larger Public-Private Partnership (PPP) projects and make investments of up to ₹1,000 crore without needing prior government approval. Additionally, these companies can allocate up to 15% of their net worth to a single project or 30% over an entire year, provided it does not exceed ₹1,000 crore.

Individual Announcements by the Companies

Railtel Corporation of India Limited

Railtel Corporation was among the first to share the news. We are pleased to announce that the Department of Public Enterprises, Ministry of Finance, Government of India, has conferred ‘Navratna Status’ upon RailTel Corporation of India Ltd.

National Hydroelectric Power Corporation Limited (NHPC)

NHPC followed suit, confirming the development in an exchange filing, It is to inform that the Department of Public Enterprises, Ministry of Finance, Govt. of India, has approved the proposal for grant of Navratna Status to NHPC Limited.

Satluj Jal Vidyut Nigam (SJVN)

SJVN conveyed its enthusiasm to the exchanges, announcing, We would like to inform you that the Department of Public Enterprises, Ministry of Finance, Government of India, has conferred ‘Navratna Status’ on SJVN Limited.

List of Navratna Companies in India

With these additions, the list of Navratna companies in India now includes:

The Navratna status, previously reserved for Miniratna Category I companies with strong financial and market performance, provides these PSUs with a greater degree of operational freedom. The most recent company to achieve Navratna status before this announcement was Mazgaon Dock Shipbuilders, making these four the 22nd, 23rd, 24th, and 25th additions to the elite group.

Also Check List of 16 Navratna Companies in India 2024