Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rail Vikas Nigam Limited (RVNL) , Navratna status
Mains level: Public Sector Enterprises
Rail Vikas Nigam Limited (RVNL) was recently granted Navratna status by the Ministry of Railways.
About RVNL
- RVNL was incorporated in 2003 with the aim of implementing rail infrastructure projects quickly and raising extra budgetary resources for SPV projects.
- The company started operating in 2005 after the appointment of its board of directors.
- RVNL was granted Mini-Ratna status in 2013.
RVNL’s functions
- RVNL has been assigned to undertake project development and execution of works covering the full project lifecycle.
- The company will create project-specific SPVs for individual works if required.
- RVNL will hand over completed railway projects to the concerned zonal railway for operation and maintenance.
Major projects undertaken
RVNL has implemented various projects in the rail sector, including:
- Doubling and electrification of existing lines
- Construction of new lines
- Gauge conversion projects.
Navratna status and its benefits
- Navratna’s status will give RVNL more operational freedom and financial autonomy.
- Enhanced delegation of powers will also be granted to the company.
- Navratna’s status will be a huge boost to RVNL’s progress.
- This status will be especially beneficial for the company as it expands its operations beyond the railway’s sector and into international projects.
Back2Basics: Central Public Sector Enterprises
- The Government runs the CPSEs under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises.
- The government grants them the status of Navratna, Miniratna and Maharatna based upon the profit made by these CPSEs.
- The Maharatna category has been the most recent one since 2009, other two have been in function since 1997.
| Maharatna | Navratna | Miniratna Category-I | Miniratna Category-II | |
| Eligibility | Net profit of ₹2,500 crore per annum OR
Net worth of ₹10,000 crore for 3 yrs. |
Score of 60 based on financial parameters AND be a Miniratna with 4 independent directors
Net profit of ₹30 crore per annum for last 3 years |
Net profit of ₹30 crore per annum OR | Positive net worth and profit for last 3 years |
| Benefits for investment | ₹1,000-5,000 crore or 15% of net worth | Up to ₹1,000 crore or 15% of net worth on a project OR 30% of net worth per annum | Up to ₹500 crore or net worth, whichever is lower | Up to ₹300 crore or 50% of net worth, whichever is lower |
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