Navratna status to Satluj Jal Vidyut Nigam

Why in news?

• Recently Satluj Jal Vidyut Nigam got Navratna status.

Satluj Jal Vidyut Nigam (SJVN)

• It is a public sector undertaking under the control of Ministry of Power.
• Established on 24 May 1988 as a joint venture of Government of India and Government of Himachal Pradesh
• It is operating India's largest 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) in Himachal Pradesh.

Benefits of getting Navratna status

• Power to execute significant investments up to ₹1,000 crore without requiring approval from the central authority
• Allowed to allocate up to 30% of its net worth per annum, but less than ₹1,000 crore
• Option to participate in joint ventures, form partnerships and set up foreign subsidiaries
• Power to its board of directors to approve mergers and acquisitions in India and abroad
• It will need approval from the Cabinet Committee on Economic Affairs to invest abroad

Maharatna, Navratna and Miniratna

• Central Public Sector Enterprises (CPSEs) are classified into three categories based on their profit and net worth –
  1. Maharatna
  2. Navratna
  3. Miniratna
     • Miniratnas are classified into Miniratna Category-I and Miniratna Category-II.

Criteria for getting Navratna status

• Already having Miniratna Category-I status.
• Should have achieved Very Good or Excellent rating under MoU system in three out of the last five years.
• Should have scored 60 points or more in the following six performance parameters –
  1. Earnings per share – 10 points
  2. Net capital and net profit – 25 points
  3. Cost of manpower in relation to total cost of production – 15 points
  4. Profit before interest and taxes on business – 15 points
  5. Profit before depreciation, interest and taxes on capital employed – 15 points
  6. Inter-regional performance – 20 points