The Government, from time to time confers Navratna status on Central Publilc Sector Enterprises (CPSEs) once they fulfill certain stipulated criteria. Recently, Shipping Corporation of India Ltd. was granted Navratna status making it the 17^th member of the elite Navratna club.

‘Navratna’ literally means ‘nine jewels’. The Government had identified nine Public Sector Enterprises (PSEs) in July 1997 that had comparative advantages and potential to emerge as global  giants as Navratnas.  These are:  BHEL, BPCL, GAIL, HPCL, IOC, MTNL, NTPC, ONGC, and SAIL.  These PSEs were given enhanced autonomy and delegation of powers to incur capital expenditure, to enter into technology joint ventures/strategic alliances, to effect organizational restructuring, to create and abolish below Board level posts, to raise capital from domestic and international market, to establish financial joint ventures and wholly owned subsidiaries, etc. Over the years, many more CPSEs were conferred Navratna status as they fulfilled the required criteria.

            The enhanced powers presently delegated to the Boards of Navratna PSEs broadly include:

i)        To incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling.

ii)       To enter into technology joint ventures or strategic alliances.

iii)     To obtain by purchase or other arrangements, technology and know-how.

iv)      To effect organizational restructuring, opening of offices in India and abroad, creating activity centers etc.

v)       Creation and abolition of all posts including and up to those of non Board level Directors.

vi)       The Board of Directors of these PSEs have the power to further delegate the powers relating to Human Resource Management.

vii)   To raise debt from the domestic capital markets and for borrowings from international market, which would be subject to the approval of  RBI/ Department of Economic Affairs, as may be required and should be obtained through the administrative Ministry.

viii)    To establish financial joint ventures and wholly owned subsidiaries in India or abroad, with certain limitations; and

ix)      Mergers and acquisitions subject to certain conditions.

Performance of all Navratana Companies is reviewed by an Apex Committee from time to time.  The proposals for granting Navratna status to CPSEs are received through concerned administrative Ministries/Departments.  PSEs fulfilling the above criteria are generally granted   Navratna status.

*****

MG/SR