Context: Rail Vikas Nigam Limited (RVNL), a Central Public Sector Enterprise under the Ministry of Railways, has been granted Navratna status.

About Rail Vikas Nigam Limited (RVNL)

• RVNL is a Central Public Sector Enterprise under the Ministry of Railways.

• It was established in 2003 to implement railway infrastructure projects and raise extra-budgetary resources for Special Purpose Vehicles (SPVs).

• RVNL began operations in 2005 and is responsible for undertaking Rail project development and execution of works, creating project-specific SPVs, and handing over completed railway projects to the relevant Zonal Railway for operation and maintenance.

What is Navratna status and how does it benefit RVNL?

• Navratna status is a recognition given by the Indian government to select public sector enterprises (PSEs) that have financial and operational autonomy.

• The grant of Navratna status to RVNL provides it with more operational freedom, financial autonomy, and enhanced delegation of powers.

• This status enables PSEs to invest up to Rs. 1000 crore without any approval from the central government, giving them more flexibility in decision making, personnel management, and joint ventures.

What was RVNL’s previous status and when did it receive Navratna status?

• RVNL was granted Mini-Ratna status in 2013.

• It has now been granted Navratna status.

Eligibility Criteria for Navratna status

• The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU ratings in three of the last five years and have composite scores of 60 or above in the following six selected performance indicators

• Net Profit to Net worth                                                          

• Manpower Cost to total Cost of Production or Cost of Services

• PBDIT to Capital employed                                                 

• PBIT to Turnover                                                                   

• Earnings Per Share                                                                   

• Inter Sectoral Performance  

Eligibility Criteria for grant of Maharatna status to CPSEs

• Having Navratna status

• Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations

• An average annual turnover of more than Rs. 25,000 crore during the last 3 years

• An average annual net worth of more than Rs. 15,000 crore during the last 3 years

• An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years

• Should have significant global presence/international operations.

Eligibility Criteria for grant of Miniratna status to CPSEs

• Miniratna Category-I status: - The CPSEs which have made profit in the last three years continuously, pre-tax profit is Rs.30 crores or more in at least one of the three years and have a positive net worth are eligible to be considered for grant of Miniratna-I status.

• Miniratna Category-II status: - The CPSEs which have made profit for the last three years continuously and have a positive net worth are eligible to be considered for grant of Miniratna-II status.

• Miniratna CPSEs should have not defaulted in the repayment of loans/interest payment on any loans due to the Government.

• Miniratna CPSEs shall not depend upon budgetary support or Government guarantees.