Indian Railways' IRCTC And IRFC Get 'Navratna' Status—What This Means

The central government has granted Navratna status to Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC), marking a significant milestone for both entities under the Ministry of Railways.

The Department of Public Enterprises announced the upgradation via an X post, stating that IRCTC has become the 25th Navratna and IRFC the 26th Navratna among Central Public Sector Enterprises (CPSEs).

A Milestone for Railway PSUs

Union Minister of Railways Ashwini Vaishnaw congratulated both IRCTC andIRFC on their feat of being upgraded to the Navratna status.

The minister noted that all seven listed railway PSUs now hold Navratna status.

He emphasised that this transformation has occurred under Prime Minister Narendra Modi’s focussed attention on Indian Railways.

The timeline of Navratna upgrades for railway PSUs is as follows:

• CONCOR - July 2014

• RVNL - May 2023

• IRCON & RITES - October 2023

• RailTel - August 2024

• IRCTC & IRFC - March 2025

The recognition is particularly special for IRCTC, which is celebrating 25 years of service in catering, tourism, and online ticketing in 2025.

IRCTC and IRFC: Key Financial Strengths

• IRCTC:

  • Annual Turnover: Rs 4,270.18 crore

  • Profit After Tax (PAT): Rs 1,111.26 crore

  • Net Worth: Rs 3,229.97 crore (FY 2023-24)

• IRFC:

  • Annual Turnover: Rs 26,644 crore

  • Profit After Tax (PAT): Rs 6,412 crore

  • Net Worth: Rs 49,178 crore (FY 2023-24)

IRFC, established in 1986, is now the third-largest government-owned non-banking financial company (NBFC) in India, playing a crucial role in financing railway expansion and modernisation.

What Navratna Status Means for IRCTC & IRFC

The upgraded status grants these PSUs:

Financial Autonomy – They can form joint ventures, subsidiaries, and enter into mergers or acquisitions without needing direct government intervention.

Operational Freedom – They can make independent business and investment decisions, enabling them to compete with private sector companies. Further, they will have greater flexibility in HR management, including hiring professionals at market-linked salaries.

Global Expansion – They can enter international markets, form strategic alliances, and expand globally without strict bureaucratic constraints.

Enhanced Market Position – Navratna companies are considered financially stable and attract more investor confidence. Their strong financial performance allows them to generate better returns for shareholders.

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