Rail Vikas Nigam Limited now has a Navratana

Rail Vikas Nigam Limited (RVNL) has now been promoted from Category-I Miniratna to the Central Public Sector Enterprises (CPSE) ‘Navratna’ category. This means the company has more autonomy when it comes to making investments, forming joint ventures, and making other financial decisions.

“Finance Minister Nirmala Sitharaman has approved the upgrade of RVNL to Navratna CPSE. RVNL will be the 13th Navratna among CPSEs,” the Department of Public Enterprises (DPE) said in a tweet. RVNL is a CPSE of the Department of Railways with annual sales of ₹19,381 crores and net income of ₹1,087 crores for the years 2021-22.

According to criteria established by the Government, Miniratna Category – I and Schedule IA CPSEs that have received an “Excellent” or “Very Good” rating under the Memorandum of Understanding system in three of the last five years and have a composite score of 60 or more in the six selected performance parameters are eligible for Navratna status. These criteria include net income to net assets, labor costs to total cost of production/services, earnings before depreciation, interest and taxes to capital employed, earnings before interest and taxes to sales, earnings per share, and cross-industry performance.

The announcement was made after market hour. During the day, the company’s share prices rose to a 52-week high of £114.62. However, profit booking soon began and the shares eventually closed at ₹104.60 BSE. This was 0.18 percent lower than Monday’s close.

The company was established during the Vajpayee government. On August 15, 2002, to bridge the infrastructure deficit of Indian Railways, then Prime Minister Atal Bihari Vajpayee announced National Rail Vikas Yojana (NRVY). The program was officially launched on December 26, 2002. To implement NRVY, RVNL was established as a 100% PSU of the Ministry of Railways on 24 January 2003 with the twin aims of raising extra-budgetary funds and realizing projects related to the creation and expansion of railway infrastructure capacity based on the fast lane. RVNL became fully operational in March 2005.

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