Navratna Companies of India - 2025 List, Eligibility, Benefits & UPSC Notes

Navratna Companies of India are a set of honourable PSEs (public sector enterprises) that have been given greater freedom under the government's grant of autonomy. They are listed as the company's best-performing financial companies and of key strategic importance to the Indian economy. Their glimmering presence in the public sector is represented by the term Navaratna in Sanskrit, meaning Nine Gems. Such businesses have more financing and operating flexibility than other businesses in the public sector, enabling them to compete internationally. Navaratna status means trust and effectiveness, encouraging those firms to go even higher in implementing governance and innovations.

Serving as a group of the government companies, Navratna Companies of India are the financial conglomerates that do not require any central governmental permission to invest up to Rs. 1000 crores. In 1997, 9 Public Sector Enterprises (PSEs) were the first to be granted Navratna status. Currently, India has 16 Navratna companies.

Navratna Companies of India is a relevant topic to UPSC Prelims and Mains. The Indian Economy is discussed in General Studies Paper 3. It also applies to public sector enterprises, policies by the government, and infrastructure. The following are some of the possible questions in areas such as classifications (Maharatna/Navaratna/Miniratna), their functions in the economic development, or autonomy in terms of governance. This topic will aid in writing improved answers in Mains and answering factual questions in the Prelims examination. Join UPSC Coaching today to boost your preparation.

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What are Navaratna Companies?

Navratna Companies of India are a select bunch of public sector enterprises (PSEs) in India. The government provides them with more financial freedom and flexibility in operating. The word Navaratna in Sanskrit means nine gems. These corporations are regarded as the best of the PSEs. As of 2025, India has 16 Navaratna Companies. Their growth, profitability and contribution to the country's economy make these companies known as consistent. They enjoy more freedom in operations since they are of navartana status.

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Eligibility Criteria for Navratna Status in India

Various benchmarks are met, including CPSEs receiving the Navaratna status. These standards ensure that only the most profitable/best companies deserve and achieve this status of excellence.

• To be eligible for Navratna status in India, a PSE must meet specific criteria set by the government. The eligibility criteria include the following:
• The company must be a Miniratna Category-I enterprise for at least three years.
• The company must have a consistent track record of profitability, net worth, and turnover.
• The company should have had a positive net worth for the last three years.
• The company should have earned a net profit in the last three years.
• The company should have a significant global presence or international operations.
• The company's performance should demonstrate its ability to compete globally.
• The company should have a good corporate governance framework and comply with regulatory requirements.
• The company should have a satisfactory Department of Public Enterprises (DPE) rating.

Read about the Agro-Based Industries here.

Features of Navaratna Companies

These companies have a set of features that make them distinct and powerful:

• Increased Financial Independence: They can invest up to 1000 crore in capital without the government's consent.
• Strategic Freedom: They enjoy the same decision-making powers as the private corporations.
• High Turnover and Net Profit: They should be able to sustain regular figures of revenue and profit margins.
• Performance-Based Selection: Navaratna companies may only be declared based on meeting some criteria, such as the ratio in Various Industries. They deal with fields such as oil, power, steel, telecom, engineering and transport.

Historical Background

The scheme was developed in 1997 to identify and empower some of India's most successful public enterprises, known as the Navaratna scheme. It aimed to ensure they became more competitive in the global market while maintaining the people's ownership. These companies were established on a performance basis and were accorded financial and managerial freedom to operate effectively.

Objective of Granting Navaratna Status

The main objectives include:

• Increase operational efficiency
• Encourage professionalism
• Boost global competitiveness
• Enable quicker decisions in significant investments
• Foster a corporate structure similar to private firms

Evaluation Parameters

Department of Public Enterprises (DPE) undertakes evaluations of CPSE based on several performance indicators:

The company must score high in most areas to gain or maintain Navaratna status.

Read about the Agro-Based Industries here.

The Navaratna title is not just honorary—it brings many practical advantages that boost a CPSE's performance and reach.

Financial Benefits

• Investment Powers: Allowed to invest up to ₹1,000 crore without prior government approval.
• Joint Ventures: Can form joint ventures or alliances in India and abroad.
• Stock Market Freedom: Can raise funds by issuing shares or debentures.

Operational Benefits

• Decentralised Decision-Making: Faster approvals and quick execution of projects.
• Autonomy in HR Management: Free to recruit employees and fix compensation.
• Foreign Investments: Can invest in subsidiaries or projects abroad.

Strategic Advantages

• Enhanced Brand Image: Being a Navaratna adds credibility and reputation.
• International Expansion: Ability to compete and expand in global markets.
• Innovation and R&D: Encouraged to invest in innovation and technology.

List Of Navaratna Companies in India - 2025

There are about 348 Central Public Sector Enterprises in the country. As of January 2025, 16 enterprises are listed under the Navratna Companies in India category. They are listed below.

Also, read the Index of Industrial Production (IIP) for UPSC here.

Bharat Electronics Limited (BEL)

• An Indian company that deals with electronics.
• Manufactures communication and radar systems.
• A major player in the manufacturing of voting electronic machines (EVMs).
• Concentrates on national security and security technology.

Container Corporation of India Limited (CONCOR)

• Central logistics and container transport company in India.
• Operates a vast network of inland container depots and terminals.
• Facilitates efficient and cost-effective cargo movement.
• Plays a crucial role in promoting containerization in the country.

Engineers India Limited (EIL)

• Engineering consultancy and project implementation company.
• Specialises in the oil and gas sector projects.
• Provides engineering solutions and project management services.
• Contributes to the development of India's energy infrastructure.

Learn more about the Industries in Maharashtra!

Hindustan Aeronautics Limited (HAL)

• Premier aerospace and defence company in India.
• Designs and manufactures aircraft, helicopters, and related systems.
• Key contributor to the Indian Air Force and the defence sector.
• Aims to enhance self-reliance in aviation technology.

Mahanagar Telephone Nigam Limited (MTNL)

• Telecommunication service provider in the metropolitan areas of India.
• Offers landline, mobile, and internet services.
• Focuses on urban telecom infrastructure.
• Aims to provide reliable communication services to urban customers.

National Aluminium Company Limited (NALCO)

• Leading aluminium producer and exporter in India.
• Involved in mining, refining, and smelting of alumina and aluminium.
• Contributes to the growth of the aluminium industry in the country.
• Emphasises sustainable and eco-friendly practices in production.

Learn more about the United Nations Industrial Development Organisation, UNIDO!

National Buildings Construction Corporation Limited (NBCC)

• Public sector company specialising in construction and infrastructure.
• Involved in project management and consultancy services.
• Executes a variety of projects, including residential and commercial complexes.
• Contributes to the development of urban infrastructure in India.

Neyveli Lignite Corporation Limited (NLC)

• Engaged in lignite mining and power generation.
• Operates thermal power plants using lignite as a fuel source.
• Focuses on sustainable and environmentally friendly energy production.
• Contributes to the power needs of South India.

NMDC Limited

• Major iron ore mining company in India.
• Extracts and sells iron ore to steel plants.
• Plays a vital role in the iron and steel industry.
• Emphasises responsible and sustainable mining practices.

Rashtriya Ispat Nigam Limited (RINL)

• State-owned steel producer in India.
• Operates integrated steel plants.
• Contributes to the country's steel production and infrastructure development.
• Emphasises quality steel production for various industries.

Also, check out the National Company Law Tribunal (NCLT) here.

Shipping Corporation of India Limited (SCI)

• Government-owned shipping company.
• Provides shipping and logistics services globally.
• Plays a crucial role in India's maritime trade and transportation.
• Focuses on maintaining a strong fleet for efficient cargo movement.

Rail Vikas Nigam Limited (RVNL)

• Engages in projects in the railway infrastructure.
• I specialise in the construction of rail lines and bridges.
• The intention is to make the railway network more efficient and capacitive.
• Helps to increase and modernise the Indian railways.

ONGC Videsh Ltd (OVL)

• Overseas arm of Oil and Natural Gas Corporation (ONGC).
• Engaged in the exploration and production of oil and gas abroad.
• Contributes to India's energy security by securing international oil assets.
• Plays a crucial role in India's global energy engagements.

Check the Industrial Disputes Act 1947 here.

Rashtriya Chemicals & Fertilisers Limited (RCF)

• Fertilisers and industrial chemicals manufacturer.
• It helps the agriculture sector as it supplies much-needed fertilisers.
• Contributes to food security in the production of fertiliser.
• Focuses more on sustainable and environmentally friendly production of fertilisers.

IRCON International Limited

• Specialises in infrastructure development and construction.
• Undertakes railway and highway projects in India and abroad.
• Contributes to the expansion and modernisation of transportation infrastructure.
• Plays a role in enhancing connectivity and promoting economic development.

RITES Limited

• Multinational consultancy and engineering company.
• Provides services in transport infrastructure projects.
• Specialises in railway-related projects and consultancy.
• Contributes to the efficient and sustainable development of transportation systems.

Also, read the Industrial Revolution in America for UPSC here.

Benefits Of Navratna Companies

The Central Public Sector Enterprises, which are classified as Navratna Companies in India, have the following benefits,

• Navratna companies enjoy greater financial and operational freedom than companies with Miniratna status.
• These companies can invest up to Rs 1000 crore or 15% of their net worth on a single project without seeking approval or permission from the Government of India.
• They can even make investments up to 30% of their net worth in one year if it does not exceed Rs. 1000 crores.
• The company can enter joint ventures, form alliances and float subsidiaries abroad.

Difference Between Navaratna, Maharatna, and Miniratna Companies

India classifies CPSEs into different categories based on size, performance, and importance. Here's how they differ:

Key Differences

Growth Path

• A Miniratna can become a Navaratna if it performs well.
• A Navaratna can upgrade to Maharatna status with continued excellence.

Importance of Navaratna Companies for the Indian Economy

Navaratna companies play a vital role in the Indian public sector economy. They bring a lot of infrastructure, jobs, and foreign exchange earnings.

Contributions to the Economy

• Generate Employment: Provide lakhs of jobs directly and indirectly.
• Infrastructure Development: Key players in the construction, telecom, and energy sectors.
• Technology Advancement: Drive innovation in defence, mining, and research.
• Foreign Exchange: Export services and goods, bringing in foreign revenue.

Role in Public Welfare

• Rural Electrification: Companies like REC help expand power to villages.
• Social Responsibility: Strong focus on CSR, education, and health services.
• Training and Skilling: Offer internships and training to Indian students and youth.

Conclusion

The conclusion is that Navaratna companies are the key success factors in Indian economic development, technology, and competitiveness in the international economy. Due to their improved autonomy, they can work fast, arrive at decisions promptly, and invest in mega projects without much bureaucracy. Such businesses also represent power, stability, and outstanding performance in the government. Indian students, particularly those aiming to clear the UPSC exam, must be aware of their nomenclature and importance as far as the exam is concerned, as well as the knowledge of the Indian industrial perspective. With India emerging as one of the world's economies, Navaratna companies will further serve as the pillars of success as far as development, innovation, and self-reliance, among other strategic sectors, are concerned.

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