IREDA granted `Navratna’ status

State-owned Indian Renewable Energy Development Agency (IREDA) has been granted 'Navratna' status by the Department of Public Enterprises, the company stated in a stock exchange filing on Friday.

The `Navratna’ status follows an year of achievement for the non-banking financial company (NBFC), which is engaged in the promotion of projects in the new and renewable energy sector as well as energy efficiency and conservation, by extending financial assistance.

IREDA, which functions under the ministry of new and renewable energy, reported its highest-ever annual loan sanctions and disbursements in the financial year 2023-24.

The company also reported a 33 per cent jump in consolidated net profit at Rs337 crore for the quarter ended 31 March 2024, compared to Rs254 crore in the year-ago quarter.

IREDA now joins 16 other state-owned companies which enjoys the freedom to decide on investment of capital of up to Rs1,000 crore, invest in joint ventures or subsidiaries and decide on human resources management.

Navratna status to central public sector enterprises (CPSEs) is based on certain eligibility criteria set forth by the Government of India and normally comes as an upgradation from the `Miniratna Category I’ status.

Such a company must have an outstanding rating under the Memorandum of Understanding System for at least three consecutive years in the last five years.

The company also must also meet key parameters in the areas such as net profit to net worth, PBDIT to capital employed, gross margin as capital expenditure, manpower cost to cost of production or services, gross profit as turnover, and earnings per share.

Navratna status is granted only if the company scores 60 out of the 100 composite points attached to these parameters.

Other CPSEs in the Navratna list include:

Hindustan Aeronautics Limited (HAL),

Bharat Electronics Limited (BEL),

Neyveli Lignite Corporation Limited (NLC India),

National Mineral Development Corporation Limited (NMDC),

National Buildings Construction Corporation Limited (NBCC),

Shipping Corporation of India Limited (SCI),

Engineers India Limited (EIL),

ONGC Videsh Limited (OVL), 

Rashtriya Ispat Nigam Limited (RINL), 

RITES Limited,

IRCON International Limited,

Rashtriya Chemicals & Fertilisers Limited (RCF),  

National Aluminium Company Limited (NALCO),

Mahanagar Telephone Nigam Limited (MTNL), 

Container Corporation of India Limited (CONCOR), 

Rail Vikas Nigam Limited (RVNL).