The term Navratna (in Sanskrit, Navratna) is the turning point in the century of governance and strategic development in the Indian state-owned companies. Navratna companies in India were introduced as a strategic classification by the Government of India in 1997 to identify and empower Central Public Sector Enterprises (CPSEs) that had not only shown stable financial capabilities but also strategic relevance of primary importance to the national economy.
The very philosophy of the Navratna status was to give such companies more managerial and financial freedom so that they could make prompt investment and operational decisions without having to seek approval from the Central Government.
This increased independence enables Navratna businesses to be more competitive, innovative, and modern corporate entities, while the government retains ownership. This position is considered to be an important stepping stone; companies that maintain high performance and meet required financial criteria may eventually be granted Maharatna status, offering even greater financial freedom and global access.
Criteria for Navratna Status
To be rated to this desirable classification requirements are that the CPSE must initially be rated as a Miniratna Category-I company (a designation in itself that necessitates constant profitability and positive net worth value) and satisfy a number of strict financial and performance criteria set forth by the Department of Public Enterprises (DPE):
- MoU Rating Excellence: the company should have received an Excellent or a Very Good in 3 out of the 5 past years of Memorandum of Understanding (MoU). This requirement is a guarantee of high and long-term operational efficiency.
- Composite Score Threshold: It should attain at least a composition score of 60 and above of 100 on the six major performance indicators measured in the past 5 years. These ratios are: Net Profit to Net Worth, Manpower Cost to Production Cost or Services Cost, Gross Margin to Capital Employed, Earning Per Share, Inter-firm Performance as well as Total Working Capital to Total Revenue.
The Power of the Status
Navratna companies have high delegated financial powers, so they can invest within a short period of time:
- Single Project Investment: The Power to invest up to 1000 crore (10 billion rupees) or up to 15 percent of their net worth in a single project without prior permission by the government. This eliminates a significant procedural bottleneck.
- Annual Investment Ceiling: Authority to invest as much as 30 percent of their overall net worth in a year (with the limit set at 1000 crore).
- Strategic Autonomy: This is the ability to enter into joint ventures, creating technological alliances and subsidiaries both in India and internationally so that they can be able to develop fast-tracked global development as well as being able to form strategic partners.
By the year 2025 ends, there will be 26 total Navratna companies in India. The companies that follow comprise 10 major sectors and are characterized by market capitalization as important members of this elite group.
Market Momentum and Scale: Key Data Points
The presence and the development size of the Navratna group turn out to be their strategic significance to the national economy:
- The Total Navratna Investment Power: The Navratna companies have the collective independent financial capacity to invest up to 1000 crore in a project (or 15 percent net worth) without the governmental consent. This is the delegated power that enables them to react promptly to the global market conditions and compete actively with the private players.
- Financial indicator (optional example FY 2023-24): Hindustan aeronautics limited (HAL) has attained the Maharatna status becoming so, in 2024 (previously Navratna), but with an impressive annual turnover of 28, 162 crore and a net profit of 7595 crore in the fiscal year concerning 2023-24. The success reflects the huge financial and operational potential that characterizes CPSEs under Navratna/Maharatna types.
The Strategic Significance of Navratna Operations
The choice of a Navratna company is not random; rather it is the acknowledgement of the Government that a CPSE plays a vital role in one of the sectors which is important to the national interest, security, or economic growth. These companies act as anchors on the market and, in many cases, they can also be used to implement national policy like the so-called Make in India program to increase the production of goods and technologies and make the country self-sufficient.
Indigenization and Role in National Security.
Their special strategic value can be evidenced by the existence of defence and aerospace organisations such as the Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL). They are the driving force behind India becoming self reliant in military technology, so as to ensure that India has the capability of maintaining and repairing its important defence machinery as well as keeping them at par with the latest advancements without having to rely on foreign suppliers.
This geo-indigenization movement is core to the long-term geopolitical stability as also India in search of global technology leadership. BEL has opportunities in the civilian area such as provision of sophisticated electronic facilities to secure communications and transmission of data over the use of its defence background to civil responsibilities.
Driving Core Infrastructure and Trade
Infrastructure and logistic related companies like Container Corporation of India Limited (CONCOR) and Rail Vikas Nigam Limited (RVNL) are the support of the trade capabilities in India. As an example, CONCOR deals with the high-levels of intermodal transport required to deliver containers to inland industrial centers with high efficiency. Operational efficiency has a direct impact on competitiveness of the Indian goods in the international markets leading to less trade friction and cost of logistics.
The fast implementation of rail works by RVNL is crucial in the congestion reduction actions of routes and facilitation of the high velocity transit of passengers and freight, a necessary condition towards long-term economic development.
Energy and Resource Security
Such navratna firms as Engineers India Limited (EIL) and National Aluminium Company Limited (NALCO) are endowed with the management and security of the resources of national interests. The professional skills of EIL mean that the refining capacity of India is adequate to satisfy the increasing domestic demand and in many cases it entails cumbersome technical consultancy on enormous expansion projects.
NALCO, being an integrated producer, enjoys uninterrupted supply of aluminum, which is a major metal in construction, automobile and defence industries at a relatively low cost. They have operations that reduce the dependence of India on the volatile international commodity markets to offer security in the necessity of resources.
Financial and Social Mandates
Financial mandates are those that are focused on a specific entity such as the Indian renewable energy development agency limited (IREDA). IREDA plays a significant role in directing the needed capital and funding to go into green energy projects, which will go directly towards the support of the India investment in renewable energy capacity development and climate ambitions. These firms undertake the projects that are considered too risky or have a too long gestation time to be undertaken by a single investor and are a very necessary developmental funder of vital areas.
List of Top 10 Navratna Companies of India
1. Bharat Electronics Limited (BEL)
- Website: https://bel-india.in/
- Sector: defence electronics, permanent/salaried, aerospace, communication.
BEL is the key producer of highly advanced electronic systems of the Indian Armed Forces that run the gamut of complex battlefield management systems, radars, and sonars, to Command, Control, Communications, Computer, and Intelligence (C4I) systems. The fact that it has a healthy order book is emphasized, as well, and its role in national security cannot be overstated. BEL has established nine large manufacturing facilities in India, which gives the company an impetus to infiltrate localization in the defence market with significant in-house research and development activities.
The company also has an exclusive area of operation that goes as far as provision of Electronic Voting Machines (EVMs), which makes it at the heart of the democratic infrastructure in the country. BEL is also actively exploring diversification by transferring its defence-grade capabilities into civilian markets where they have had an interest in cybersecurity, smart cities infrastructure, and medical electronics to support its local and international sales.
Focus: Modernisation and Indigenisation of the defence and entry into non-defense markets like homeland security, smart cities, smart medical electronics.
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2. Hindustan Aeronautics Limited (HAL)
- Website: https://hal-india.co.in/MTA_May12.asp
- Sector: Aerospace and Defence.
HAL is the first aerospace and defence enterprise in India, the hub of local defence in the country. It has the design, production and service of a diverse range of military aircraft, helicopters (such as the Dhruv and Rudra), jet engines, and systems including the main manufacturer of the Tejas Light Combat Aircraft (LCA) group. HAL owns 20 manufacturing and 10 research and development buildings, has an almost monopoly in repair and overhaul (ROH) of most of the aircrafts flown by the Indian Air Force and Navy.
The recent strategic agreements involve a support package in the implementation of 97 LCA Mk1A planes, which underscore its series of defence projects and high execution skills as depicted by its strong Q2 FY26 growth in profits.
Focus: It is the first to be self-reliant in aviation technology in India, maintenance and overhaul of foreign aircraft platforms, and increase of its manufacturing capacity.
3. Container Corporation of India Limited (CONCOR)
- Website: https://www.concorindia.co.in/about-concor
- Sector: Logistics, Rail Transportation.
CONCOR is one of the key Navratna companies in India and the most prominent CPSE in multimodal logistics and container transportation, facilitating a favorable balance in domestic and global trade. It operates an extensive national network of Inland Container Depots (ICDs) and Container Freight Stations (CFSs), using the Indian Railway network to move containers efficiently. The Q2 FY26 performance marked a record high for the company due to its strategic focus on logistics integration and operational efficiency.
CONCOR’s growth plans are closely aligned with the implementation of Dedicated Freight Corridors (DFCs), which are expected to significantly increase the speed and volume of container transportation, directly boosting the competitiveness of Indian goods in global EXIM trade.
Focus: This is aimed at increasing the efficiency of intermodal freight transport, developing infrastructures and extending logistics services to the entire subcontinent to enable the EXIM trade.
4. Engineers India Limited (EIL)
- Website: https://engineersindia.com
- Sector: Engineering Consultancy, Oil and Gas, Infrastructure.
EIL is a large firm in engineering consultancy and project implementation focusing in the key hydro-carbon industry (refineries, petrochemicals, pipelines). EIL offers turnkey solutions in the development and upgrading of the energy infrastructure in India. It has a tremendous portion of the domestic consultancy market and is very active in extending its overseas presence.
EIL recently signed an MOU with the Saudi Arabian onshore oil and gas projects with NMDC Energy in UAE to cooperate using its solid engineering experience to explore the Middle East energy market. This strategic alliance is to provide high-quality engineering and construction solutions in accordance with the energy transition trends in the world.
Focus: To offer full-scale services through the idea of commissioning in the development and updated infrastructure in the key energy and infrastructure sectors of India at both local and international levels.
5. National Aluminium Company Limited (NALCO)
- Website: https://mudira.nalcoindia.co.in/rec_portal/default.aspx
- Sector: Metals and Mining (Aluminium).
NALCO is a big Bauxite-Alumina-Aluminium-Power complex with a large size and one of the largest foreign exchange-earning CPSEs in India. It is a fully cost-effective supply chain with its own mines, refineries, and smelters that are backed by its captive power plants, located in Odisha. NALCO is internationally known as an inexpensive manufacturer of aluminum.
Its size of operation is vast, consisting of Bauxite Mines as well as a big Aluminium Smelter complex. In a bid to become strong within the local and global markets, in recent years, it has commissioned the amalgamated Utkal D&E coal mines in Jan’ 2025 and has diversified its product into new value-added products such as cookware sheets and alloy billets.
Focus: It has to be cost-efficient in its operations, value-added product focus and enhanced ability in its presence on the international markets on aluminium.
6. NMDC Limited
- Website: https://www.nmdc.co.in/
- Sector: Metals and Mining (Iron Ore, diamonds)
NMDC is one of the key Navratna companies in India and the largest iron ore producer in the country, supplying essential raw material to the domestic steel industry. It operates highly mechanized mines in Chhattisgarh and Karnataka and is also India’s only diamond producer through its Panna mines in Madhya Pradesh. India relies heavily on NMDC’s consistent iron ore output to meet the nation’s massive steel production requirements.
The company maintains a strong competitive edge as one of the lowest-cost iron ore producers globally. Its strategic priorities include expanding capacity—aiming for 100 MT iron ore mining capacity by 2030—and diversifying into mineral exploration to secure long-term resource availability for key industrial sectors.
Focus: Ensuring the continual supply of its raw materials to the steel industry in India, exploration of its mineral resources, and sustainable mining operations besides diversifying its mineral operations.
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7. Rail Vikas Nigam Limited (RVNL)
- Website: https://sites.google.com/site/irseetimes2/zonal-railways/rvnl
- Sector: Railway Infrastructure, Construction and Engineering.
RVNL is a major agency executing the multilateral contract of the ministry of railways to plan and fast track the major railway infrastructure works such as new routes, doubling of routes, electrification and workshops. The company also obtains extra-budgetary funds and the projects are completed within a shorter time.
RVNL has revealed a proactive growth plan, with the growth rate of 10 percent revenue growth in FY27 and is set to expand the business to other countries, where they have signed business development agreements in Oman. It has a bright and strong order book in railway works spread in India which is fundamental in the increasing logistic requirements and network modernization in the country.
Focus: Growing the capacity and efficiency of the Indian railway network by accelerating the project implementation process and modernizing it and by procuring extra-budgetary means of financing new projects.
8. Indian Renewable Energy Development Agency Limited (IREDA)
- Website: https://www.ireda.in/home
- Sector: Specialty Finance, Renewable energy Industry
IREDA is one of the key Navratna companies in India and a crucial Non-Banking Financial Institution (NBFI) dedicated to accelerating the country’s green energy transition. It provides funding, advisory services, and loans for large-scale renewable energy projects, including solar, wind, and biomass. The sharp rise in its loan sanctions and disbursements highlights its growing importance in ensuring India receives the capital required to meet its ambitious climate and renewable energy targets.
After a successful IPO in 2023, IREDA has emerged as a leading Green Financing Institution, mobilizing both domestic and global capital to fast-track India’s shift toward a low-carbon economy. With a revenue mobilization target of ₹8,200 crore for FY 2025–26, IREDA continues to play a pivotal role in financing green energy initiatives that support national climate commitments.
Focus: Funding and promoting sustainable development of energy in order to assist India in achieving its high-ambitious climate and energy targets and the forefront of the development of green finance.
9. Shipping Corporation of India Limited (SCI)
- Website: https://www.shipindia.com/
- Sector: Shipping and Logistics
SCI is the leading shipping company of India with a variety of shipping fleet comprising tankers, bulk carriers and Leap container ships. It forms the core part of linking the trade routes in India and also facilitating the EXIM (Export-Import) trade of the country. The company functions in liner, bulk carrier and tanker operations, which usually deal with the strategic imports of oil and other necessary commodities in the country.
SCI has also been conducting strategic alliances (such as an MOU with key oil PSUs) (BPCL, HPCL and IOCL) to jointly purchase and charter vessels to transport energy to enhance the maritime power of India and its energy security as per the vision Atmanirbhar Bharat. Operation Scale: SCI is essential to linking trade routes in India and underpinning the Trade of the nation on EXIM (Export-Import) and runs a variety of fleets on its global routes and tends to be managing strategic national oil and other commodity importation.
Focus: The control of commercial and operational elements of shipping, the growth of fleet capacity, and participating in the process of technical consultancy of the port and maritime infrastructure.
10. Oil India Limited (OIL)
Website: https://www.oil-india.com
Sector: Oil & Gas Exploration and Production (Upstream)
Oil India Limited (OIL), a prominent Navratna PSU under the Ministry of Petroleum and Natural Gas, is one of India’s major national oil and gas enterprises. Founded in 1959 and headquartered in Noida, Uttar Pradesh, the company is the country’s second-largest player in the oil and gas sector.
Its core activities include the exploration, production, and transportation of crude oil and natural gas, along with LPG production and growing investments in renewable energy.
With both domestic and international operations, OIL is instrumental in strengthening India’s energy security and is steadily advancing into cleaner, sustainable energy solutions in line with the nation’s long-term energy transition vision.
Focus: The exploration and production of crude oil and natural gas, expansion of upstream assets, enhancement of natural gas development, and diversification into renewable energy and petrochemical services to strengthen India’s energy security.
Navratna Company Comparison Table
| Company Name | Sector | Primary Role | Delegation Cap (Single Project) | Strategic Focus |
| Bharat Electronics (BEL) | Defence Electronics | Manufacturer of Radars, C4I Systems, EVMs. | Up to ₹1,000 Cr. | Defence Indigenization & Civilian Tech |
| Hindustan Aeronautics (HAL) | Aerospace/Defence | Design and Manufacture of Military Aircraft/Engines. | Up to ₹1,000 Cr. | Aerospace Self-Reliance & ROH |
| Container Corporation (CONCOR) | Logistics/Rail | Multimodal Container Transport (ICDs/CFSs). | Up to ₹1,000 Cr. | Enhancing Rail-Trade Efficiency (EXIM) |
| Engineers India (EIL) | Engineering/Oil & Gas | Consultancy & Project Management for Refineries. | Up to ₹1,000 Cr. | Energy Security & Global Engineering |
| National Aluminium (NALCO) | Metals & Mining | Integrated Bauxite-Alumina-Aluminium Producer. | Up to ₹1,000 Cr. | Cost-Efficient Aluminum Supply Chain |
| NMDC Limited | Metals & Mining | India’s Largest Iron Ore and Diamond Producer. | Up to ₹1,000 Cr. | Raw Material Supply for Domestic Steel |
| Rail Vikas Nigam (RVNL) | Railway Infrastructure | Execution of Railway Infrastructure Projects (Electrification, Doubling). | Up to ₹1,000 Cr. | Railway Capacity Enhancement & Modernization |
| IREDA | Specialized Finance | Financing of Renewable Energy Projects (Solar, Wind). | Up to ₹1,000 Cr. | Green Finance & Climate Goals |
| Shipping Corporation (SCI) | Shipping/Logistics | Premier Owner/Operator of India’s Fleet (Tankers, Bulk Carriers). | Up to ₹1,000 Cr. | Managing Strategic Trade Routes (EXIM) |
Ending Note
Navratna companies in India serve as crucial financial and operational pillars of the Indian economy, contributing significantly across key sectors such as defence, energy, infrastructure, telecommunications, and logistics. Their Navratna status reflects strong performance, high reliability, and consistent profitability, enabling them to compete effectively with global corporations. This prestigious recognition also grants these Central Public Sector Enterprises (CPSEs) greater autonomy, including the authority to invest up to ₹1,000 crore (or 15% of their net worth) without requiring prior approval from the Government of India.
With this enhanced financial freedom, these companies can respond faster to market opportunities, adopt advanced technologies, expand internationally, and strengthen India’s strategic capabilities. Their continued growth drives national development, boosts employment, promotes innovation, and supports long-term economic stability. As engines of progress, they play a vital role in ensuring technological self-reliance and sustaining India’s competitive presence on the global stage.
FAQs
1. What are Navratna Companies?
High-performing CPSEs given greater financial and operational autonomy by the Government of India.
2. How Does a Company Qualify for Navratna Status?
It must be a Miniratna-I and score at least 60/100 on DPE performance metrics with strong MoU ratings.
3. What Financial Powers do Navratnas Have?
They can invest up to ₹1,000 crore or 15% of net worth in a project without government approval.
4. How Many Navratna Companies Exist in 2025?
India has 26 Navratna companies across sectors like defence, mining, logistics, and energy.
5. Why are Navratna Companies Important?
They support national security, infrastructure growth, economic development, and technological self-reliance.