IRCTC, IRFC Upgraded to Navratna: All Listed Railway PSUs Now Navratnas

The Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) have been granted Navratna Public Sector Undertaking (PSU) status by the Indian government. With this, all seven listed railway PSUs have now attained Navratna classification, providing them greater financial and operational autonomy. The move reflects the government’s commitment to enhancing the efficiency and profitability of railway-owned enterprises.

Key Highlights

Navratna Status for IRCTC & IRFC

• The Central Government granted Navratna status to IRCTC and IRFC on March 4, 2025.
• This upgrade gives them greater operational flexibility and investment freedom.
• With this inclusion, all seven listed railway PSUs have now achieved Navratna status.

Listed Railway PSUs with Navratna Status

The seven railway PSUs classified as Navratna include,

• Container Corporation of India (Concor) – First to achieve Navratna status in July 2014.
• Rail Vikas Nigam Limited (RVNL)
• IRCON International Limited
• RITES Limited
• RailTel Corporation of India
• Indian Railway Catering and Tourism Corporation (IRCTC) – Now a Navratna company.
• Indian Railway Finance Corporation (IRFC) – Now a Navratna company.

About IRCTC & IRFC

• IRCTC: The ticketing and catering arm of Indian Railways, offering online railway ticket booking and catering services.
• Annual Turnover (FY24): ₹4,270 crore
• Profit After Tax: ₹1,111 crore
• Net Worth: ₹3,230 crore
• IRFC: The financial arm of Indian Railways, responsible for raising funds for railway infrastructure projects.

Growth in Railway PSU Profits

• The cumulative profit of railway PSUs increased from ₹7,015 crore in FY21 to ₹11,780 crore in FY24, showcasing strong financial performance.

Understanding Navratna Status

Categories of PSUs in India

The Indian government classifies PSUs into three categories,

• Maharatna – The largest and most financially independent PSUs.
• Navratna – High-performing mid-tier PSUs with greater investment autonomy.
• Miniratna (Category I & II) – Smaller PSUs with moderate operational independence.

Eligibility for Navratna Status

A PSU must,

• Be a Miniratna-I company.
• Have an “Excellent” or “Very Good” MoU rating in at least three out of the last five years.

Score 60+ points based on six performance indicators:

• Net Profit to Net Worth
• Manpower Cost to Total Cost of Production
• PBDIT (Profit before Depreciation, Interest & Taxes) to Capital Employed
• Profit before Interest & Taxes to Turnover
• Earnings Per Share (EPS)
• Inter-Sectoral Performance

Advantages of Navratna Status

• Financial Autonomy: Can invest up to ₹1,000 crore without government approval.
• Allowed to invest up to 15% of net worth on a single project and 30% of net worth annually (capped at ₹1,000 crore).
• Capital Expenditure Freedom: Can incur capital expenditure on new purchases and replacements without monetary limits.
• Strategic Alliances: Can enter technology joint ventures and partnerships independently.

Summary/Static	Details
Why in the news?	IRCTC, IRFC Upgraded to Navratna: All Listed Railway PSUs Now Navratnas
New Navratna PSUs	IRCTC & IRFC
Total Navratna Railway PSUs	7 (Concor, RVNL, IRCON, RITES, RailTel, IRCTC, IRFC)
IRCTC Turnover (FY24)	₹4,270 crore
IRCTC Profit (FY24)	₹1,111 crore
Cumulative Railway PSU Profits (FY21 to FY24)	Increased from ₹7,015 crore to ₹11,780 crore
Investment Limit for Navratna PSUs	₹1,000 crore or 15% of net worth per project
Navratna Eligibility Criteria	Miniratna-I status, 60+ score in key financial metrics