IREDA, National Fertilizers, and HUDCO Receive Navratna Company Status
Introduction
Three major Indian Public Sector Undertakings (PSUs)—the Indian Renewable Energy Development Agency (IREDA), National Fertilizers Limited (NFL), and the Housing and Urban Development Corporation (HUDCO)—have been granted the prestigious Navratna status by the Indian government. This designation allows these companies greater financial autonomy and flexibility, enabling them to invest up to Rs 1,000 crore without prior government approval.
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| IREDA, National Fertilizers and HUDCO got Navratna company status |
Indian Renewable Energy Development Agency (IREDA) Achieves Navratna Status
The shares of IREDA surged over 12% to Rs 192 on the Bombay Stock Exchange (BSE) following the announcement of its new status. IREDA is a non-banking financial institution focused on promoting, developing, and providing financial assistance for projects related to renewable energy sources and energy efficiency/conservation.
To achieve Navratna status, companies must meet specific criteria, including a minimum of four independent directors on their board, and score at least 60 out of 100 on parameters such as Net Worth, Net Profit, Total Production Cost, Manpower Cost, Service Cost, and Profit Before Depreciation, Interest, and Tax (PBDIT). IREDA's elevation to Navratna status signifies its growing importance in the renewable energy sector and its ability to operate with greater independence.
National Fertilizers Limited (NFL) Receives Navratna Status
National Fertilizers Limited (NFL), a state-owned company, also received Navratna status from the Department of Public Enterprises. Established on 23 August 1974, NFL's corporate office is located in Noida, Uttar Pradesh. With an authorized capital of Rs 1,000 crore and a paid-up capital of Rs 490.58 crore, NFL has become a significant player in the fertilizer industry. The Government of India holds 74.71% of its shares, while 25.29% is owned by financial institutions and others.
The new status allows NFL greater autonomy in its operations, facilitating quicker decision-making and enabling the company to expand its operations without extensive government oversight. This recognition underscores NFL's role in supporting India's agricultural sector through fertilizer production and distribution.
Housing and Urban Development Corporation (HUDCO) Granted Navratna Status
The Housing and Urban Development Corporation (HUDCO), another government financial institution, has also been granted Navratna status. Incorporated on 25 April 1956 as "The Housing and Urban Development Finance Corporation Private Limited," HUDCO was later rebranded as "Housing and Urban Development Corporation Limited." A fresh certificate of incorporation was issued on 9 July 1974 by the then-Registrar of Companies in Delhi and Haryana.
HUDCO's primary focus is on providing financial support for housing and urban development projects. The Navratna status allows HUDCO to operate with increased autonomy, which is crucial for an organization involved in large-scale housing and urban development projects.
Conclusion
The recognition of IREDA, National Fertilizers Limited, and HUDCO as Navratna companies reflects their significant contributions to their respective sectors and their potential for continued growth and innovation. This status grants them greater operational independence and flexibility, facilitating further investment and expansion. As India continues to evolve, these companies are well-positioned to drive progress in renewable energy, agriculture, and urban development.
