Big Boost for IRCTC & IRFC: Government Elevates Them to Navratna Rank!

The Indian government has elevated the status of Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to Navratna category, granting them greater financial autonomy. This upgrade allows both Central Public Sector Enterprises (CPSEs) to make discretionary investments of up to ₹1,000 crore or 15% of their net worth, whichever is lower, without requiring prior government approval.

Both IRCTC and IRFC operate under the administrative control of the Ministry of Railways and play crucial roles in the Indian railway ecosystem. IRCTC is primarily responsible for online ticketing, catering, and tourism services, while IRFC serves as the financial arm of Indian Railways, providing crucial funding for infrastructure projects and rolling stock procurement.

The Navratna status is a significant milestone for these companies, as it grants them greater financial independence and decision-making power, enabling them to explore new business opportunities, expand operations, and enhance their overall efficiency. This move is part of the government’s broader strategy to strengthen key public sector enterprises by granting them more operational flexibility while maintaining oversight.

The Department of Public Enterprises recently announced via a post on X that the Indian government has granted “Navratna” status to two major public sector enterprises: Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC). With this recognition, they have become the 25th and 26th companies to receive the prestigious “Navratna” designation among Central Public Sector Enterprises (CPSEs).

IRCTC, which operates under the Ministry of Railways, has demonstrated strong financial performance in the fiscal year 2023-24. According to the post, the company reported an annual turnover of ₹4,270.18 crore. Its Profit After Tax (PAT) stood at ₹1,111.26 crore, and its net worth reached ₹3,229.97 crore for the same period.

The “Navratna” status is awarded to select CPSEs that exhibit strong financial performance and operational efficiency, granting them greater autonomy in investment and expansion decisions.

In January this year, The Economic Times (ET) had reported that the Indian government was considering upgrading Indian Railway Catering and Tourism Corporation (IRCTC) to Navratna status. Now, this move has been officially confirmed, marking a significant milestone for the company.

According to an official statement, IRCTC has become the 25th Navratna among Central Public Sector Enterprises (CPSEs). The company, which plays a key role in managing online railway ticketing, catering services, and tourism operations, reported an annual turnover of ₹4,270.18 crore, a profit after tax (PAT) of ₹1,111.26 crore, and a net worth of ₹3,229.97 crore for the financial year 2023-24.

Similarly, Indian Railway Finance Corporation (IRFC) has been designated as India’s 26th Navratna CPSE. As the financial arm of Indian Railways, IRFC is responsible for raising funds to support railway infrastructure and rolling stock procurement. For the 2023-24 fiscal year, the company reported an annual turnover of ₹26,644 crore, a profit after tax (PAT) of ₹6,412 crore, and a net worth of ₹49,178 crore.

With this elevation to Navratna status, both IRCTC and IRFC will now have greater financial autonomy, allowing them to make larger discretionary investments and operate with increased flexibility in their decision-making processes. This move aligns with the government’s broader objective of empowering high-performing public sector enterprises and enhancing their operational efficiency.

The Navratna status granted to Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) is expected to bring several strategic benefits, including faster decision-making and greater operational efficiency. With this enhanced autonomy, both companies will be better positioned to execute their capital expenditure (CAPEX) and investment plans, supporting long-term business expansion and market growth.

One of the key advantages of this upgrade is the increased financial and strategic independence that allows IRCTC and IRFC to establish joint ventures, set up overseas offices, and explore new markets with greater ease. By tapping into local expertise and global opportunities, they can enhance their market presence and competitiveness.

Additionally, the Navratna status will encourage technological innovation and strategic collaborations, enabling both companies to develop new solutions, improve service delivery, and strengthen their industry standing. It also opens doors for mergers and acquisitions, which can help drive business growth, expand market share, and enhance overall profitability.

Overall, this elevation marks a significant step in the government’s efforts to empower high-performing Central Public Sector Enterprises (CPSEs), giving them the flexibility to pursue larger projects, strategic partnerships, and long-term expansion while maintaining financial discipline.