GoI Elevated Railways CPSE’s IRCTC and IRFC to Navratna Status

Current Context: The Government of India elevated Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to Navratna Central Public Sector Enterprises (CPSE) status on March 3, 2025.

• This recognition grants them greater financial autonomy, allowing investments of up to ₹1,000 crore without prior government approval.
• Both entities achieved this milestone due to their strong financial performance, with IRCTC reporting a net profit of ₹1,111 crore and IRFC recording ₹6,412 crore in FY 2023-24.
• This upgrade enhances their operational efficiency and global competitiveness.

Question:

Q.1 What financial autonomy does the Navratna status provide to IRCTC and IRFC?
a) They can invest up to ₹1,000 crore without government approval
b) They can invest up to ₹500 crore without government approval
c) They can invest up to ₹5,000 crore with government approval
d) They must seek approval for all financial investments

Answer: a) Navratna CPSEs are allowed to invest up to ₹1,000 crore or 15% of their net worth in a single project without prior approval, enhancing their financial and operational flexibility.