Railtel, SJVN, NHPC bag 'Navratna' status from FinMin, shares jump up to 5%

Navratna companies can invest up to Rs 1,000 crore without prior government approval.

The Ministry of Finance upgraded four public-sector enterprises, SJVN, Solar Energy Corporation, NHPC and RailTel Corporation of India, to the 'Navratna' status on August 30. Three of the four new Navratna companies in India are publicly traded: Railtel, SJVN, and NHPC.

Railtel and SJVN shares surged over five percent in trade on September 2, while NHPC shares were 4.5 percent higher in early trade.

PSUs are given a status, from Maharatna companies, to Navratna companies and Miniratna companies. Navratna status is awarded to government-owned companies that were previously classified under 'miniratna' category I, recognizing their strong financial and market performance.

Navratna companies can invest up to Rs 1,000 crore without prior government approval. Navratna PSUs also can allocate around 15 percent to a specific project or 30 percent of their net worth over an entire year, as long as it is under the Rs 1,000 crore limit.

Shipbuilder Mazgaon Dock was the last PSU to be upgraded to the Navratna status, making these four the 22nd, 23rd, 24th, and 25th enterprises to be upgraded.

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For the first quarter ended June, RailTel Corporation of India saw a 25.2 percent on-year jump in net profit, to Rs 48.7 crore. SJVN's consolidated net profit rose 31 percent to Rs 357.09 crore in the June quarter as against Rs 271.75 crore during the same period last year.

NHPC's net profit edged up by 1.2 percent YoY to Rs 1,108.5 crore for the first quarter ending June 30, 2024.

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