Thanks to their prudent management and profitability, Navratna corporations rank among the finest public sector undertakings (PSUs) in India. These organizations can make investments valued at up to ₹1,000 crore without government approval. Further, these businesses hold operating and financial power, allowing them to make quick decisions on investments, joint ventures, and partnerships, subject to conditions. Let’s learn more about what is Navratna company.
What is Navratna company?
A public sector enterprise in India that has been given Navratna status is called a Navratna company. These companies play a crucial role in the country’s business landscape and are more significant than other public sector undertakings (PSUs) in India. Navratna companies have power over spending cash, investing in joint ventures or businesses, and managing human resources.
Overview of Navratna companies in India
Many stockbroking firms include Navratna businesses on their recommendation lists due to their strong financial performance and strategic importance. But what is a Navratna company? A Navratna company in India represents a unique type of public sector enterprise for which the government has granted autonomy and financial powers. In 1997, the government began conferring this status to select public sector undertakings that met specific performance and profitability criteria.
These businesses are vital to the economy and have a good reputation in India. Besides, having Navratna status gives them more power over how much they spend on projects, how much they invest in relationships or new businesses, and how they handle their employees.
The following benefits are given to Navratna companies:
- Navratna companies are financially independent and can put up to Rs. 1,000 crore, or 15% of their net worth, into a single project or up to 30% per year.
- They can collaborate on projects, make partnerships, and establish branches abroad.
List of Navratna companies in India in 2025
India’s Navratna companies operate in various fields, including manufacturing, energy, construction, and telecoms. Therefore, after understanding what is Navratna company, let’s take a look at the list of Navratna companies and their evolution. Please note that the list is not exhaustive.
• Engineers India Limited (EIL)
Established in 1965 as a PSU, EIL is an engineering consulting company that offers services in design, procurement, engineering, construction, and project management. In addition to technology, it focuses on project management, supply chain management, pre-front-end engineering design (FEED), and technology.
• Container Corporation of India Limited (CONCOR)
CONCOR was founded in 1988 and started operating in 1989, taking over seven Inland Container Depots (ICDs) from Indian Railways. It currently operates logistics facilities such as dry ports and container freight stops, which facilitate domestic and international services. Besides, among its services are LCL hub services, moving goods by air, secured storage, chilled containers, container repair, and more.
• Bharat Electronics Limited (BEL)
BEL, a Bengaluru-based aerospace and defense company, was established in 1954. It makes and sends electrical systems and tools to defense and non-defense industries. BEL makes a wide range of defense goods, such as radars, navigation systems, military systems, electronic warfare systems, electronics, and more. Moreover, it offers cybersecurity, e-governance, citizen radars, national security, e-mobility, train systems, and telecom solutions to defense markets.
• Indian Railway Catering & Tourism Corp. Ltd (IRCTC)
IRCTC is engaged in providing online railway tickets, catering services to railways, and packaged drinking water at railway stations and trains in India. The firm’s segments include Catering, Rail Neer, Internet Ticketing, Tourism, and State Teertha.
• Neyveli Lignite Corporation Limited (NLC India)
Established in 1956, NLC India Limited generates electricity using lignite, coal, and renewable energy sources, including wind and solar. It is also in charge of open-pit lignite mining. Further, NLC supplies power to the state DISCOMs in Rajasthan and southern India.
• Rashtriya Ispat Nigam Limited (RINL)
Established in 1971, RINL runs the Visakhapatnam Steel Plant on behalf of the Ministry of Steel. It is the country’s first shore-based integrated steel plant and is known for making things that meet customer needs. It uses cutting-edge technology to create high-quality steel and runs companies such as Eastern Investments Limited and The Orissa Minerals Development Company.
• Rashtriya Chemicals & Fertilisers Limited (RCF)
RCF is a well-known company in India’s public sector that has been manufacturing chemicals and fertilizers since 1978. It sells biofertilizers, vitamins, complicated fertilizers, neem urea, and 100% water-soluble fertilizers. Besides, the firm’s Suphala and Ujjwala brands have a high level of brand value and are well-known nationwide.
• Mahanagar Telephone Nigam Limited (MTNL)
Established in 1986, it has offices in Mumbai and Delhi and provides fixed-line phone services. It offers prepaid and post-paid plans, 3G internet plans, mobile TV, foreign calls, and features that add value to the phone service. Millennium Telecom Limited and Mahanagar Telephone Limited are both subsidiaries of Mahanagar Telephone Nigam Limited (MTNL).
• Buildings Construction Corporation Limited (NBCC)
In 1960, NBCC was established to oversee civil construction projects, national security infrastructure, and civil sector infrastructure. It also emphasizes business and home projects. Through its 31 regional offices, NBCC runs important national programs like AMRUT, PMGSY, and solid waste management projects.
• National Aluminum Company Limited (NALCO)
Founded in 1981, NALCO is a company that primarily manufactures and sells alumina and aluminum. Its headquarters are located in India. Its Chemical and Aluminum segments make alumina hydrate, calcined alumina, wire bars, billets, and aluminum strips, among other things.
• National Mineral Development Corporation Limited (NMDC)
This corporation, founded in 1958, manufactures iron ore and explores minerals for limestone, copper, diamond, and rock phosphate. NMDC’s iron-making plants in Chhattisgarh and Karnataka produce more than 40 MTPA of iron. Its divisions are Legacy Iron Ore Limited, NMDC Power Limited, and other companies.
• Rail Vikas Nigam Limited (RVNL)
Established in 2003, RVNL is responsible for undertaking various railway projects, including workshops, new lines, electrification, and bridges. From planning to finishing, it is responsible for all parts of the project cycle, such as design, contract management, funding, and approval. RVNL operates on turnkey projects for companies in the national and state governments.
• Shipping Corporation of India Limited (SCI)
Established in 1961, SCI is India’s largest shipping company and was awarded the Navratna title in 2008. It works in the ship, bulk carrier, tanker, technical, and offshore areas. It runs a diverse fleet and offers shipping services to many industries.
• RITES Limited
Founded in 1974, RITES provides a range of services related to transportation infrastructure and technology. Ropeways, tunnels and bridges, land ports, trains, and city areas are some of the businesses that RITES works with. It also provides project management advice, checks for technical and economic viability, third-party inspections, building supervision, and more.
• ONGC Videsh Limited (OVL)
Established in 1965, the international arm of Oil and Natural Gas Corporation (ONGC) focuses on research and production worldwide. Its main goal is to get permission to produce and conduct research in other countries. Aside from the Middle East and Africa, OVLs work in Russia, the Commonwealth of Independent States, and the Asia-Pacific region, and in Russia on various pipeline projects, exploring blocks, and production projects.
• IRCON International Limited
Established in 1976, IRCON helps with the planning, buying, and building of transportation infrastructure projects such as highways, metro systems, bridges, tunnels, and trains. It also works on projects in the build, run, and pass mode, and the mixed-income mode.
Benefits of being a Navratna company in India
Understanding Navratna company will help you see its benefits, such as greater financial freedom, quicker decision-making, and easier investments. These all help India’s public sector be more competitive and grow. Let’s learn more in a nutshell.
- Higher Financial Freedom: Navratna companies don’t need government approval to invest up to ₹1,000 crore, or 15% of their net worth, in a single project.
- Enhanced Flexibility to Invest: These businesses can give up to 30% of their annual net worth, as long as the invested amount doesn’t exceed ₹1,000 crore.
- Independence in Growth and Diversification: They can collaborate on joint projects, make innovative partnerships, and set up branches in India and other countries.
- Flexible Human Resource Management: Navratna businesses have more control over hiring, perks, and rewards based on success.
- Global Competitiveness: Because they are independent, they can compete better overseas, which boosts their business potential.
- Enhanced Efficiency: When fewer delays are caused by red tape, businesses can make faster business choices, increasing output and profits.
Eligibility criteria to become a Navratna company
To understand what the Navratna company is, it’s essential to understand the eligibility criteria. According to the Indian government, the following conditions must be met for a company to be labelled a Navratna in India:
- Currently, the company should be listed on Schedule A of the CPSEs and have a Miniratna Category I standing.
- According to the Memorandum of Understanding System, it must have gotten an A+ yearly for at least three of the last five years.
- Six other important areas where the company must also meet certain standards are net profit to net worth, PBDIT to capital employed, gross margin as capital spending, labor cost to cost of production or services, gross profit as revenue, and earnings per share.
Conclusion
Navratna companies are important in many areas, such as energy, construction, and telecommunications. To understand their role, it’s helpful to know what is Navratna company—they are the backbone of the country’s economic growth. They make a big difference in India’s economic growth by investing a lot of money, encouraging new ideas, and providing excellent goods and services.
