Two Railway Companies-IRCON International Ltd. and RITES Ltd have been granted “Navratna” status

NEW DELHI : IRCON International Ltd. and RITES Ltd. informed the exhcanges on Thursday, October 12, that they have been granted the “Navratna” status by the Government of India.

As a “Navratna” company, a state-run enterprise has the authority to invest up to Rs 1,000 crore without explicit government approval.

IRCON and RITES have become the 15th and 16th CPSEs to have been granted the “Navratna” status. The other 14 companies which are granted this status include Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, Oil India, PFC, Rashtriya Ispat Nigam, REC and Shipping Corporation of India.

For a company to be granted the “Navratna” status, it has to report a net profit of more than Rs 5,000 crore for three consecutive years and maintain an average annual turnover of Rs 25,000 crore for three years or have an average annual net worth of over Rs 15,000 crore for three years.

IRCON International is involved in infrastructure construction services ranging from roads, highways, and bridges to airports, mass rapid transit systems and commercial buildings.

On the other hand, RITES offers transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance and other related services.

Shares of IRCON International have more than doubled so far in 2023, rising 128% as of closing on October 12. On the other hand, shares of RITES have also risen close to 40% so far this year.