RailTel gets Navratna status

Why in news?

• Recently RailTel got Navratna status.

RailTel

• It is a Public Sector Undertaking under the Ministry of Railways
• Established – Year 2000
• It is the largest neutral telecommunication service provider in the country
• It owns a pan India optic fibre network covering all the important towns and cities and many rural areas of the country
• It undertakes modernisation of train operations and administration network systems for Indian Railways
• It also undertakes to provide nationwide broadband telecommunication and multimedia network to all parts of the country.

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 –
  • Maharatna
  • Navratna
  • Miniratna
    • Miniratnas are classified into Miniratna Category-I and Miniratna Category-II.