The Indian Renewable Energy Development Agency (IREDA), a public sector entity, announced on Friday that it has been conferred with the ‘navratna’ status by the government, as per a filing submitted to the stock exchanges by the company.
What is a navratna status and how it is accorded?
IREDA, a non-banking financial institution operating under the Ministry of New and Renewable Energy, is pivotal in advancing and supporting projects associated with new and renewable energy sources.
With the grant of ‘navratna’ status by the Indian government, IREDA gains substantial autonomy in its operations. As a ‘navratna’ PSU, it is empowered to undertake significant investments of up to ₹1,000 crore without seeking approval from the central authority.
Moreover, these entities can allocate up to 30 per cent of their net worth annually, capped at ₹1,000 crore. Additionally, they enjoy engaging in joint ventures, forming partnerships, and establishing overseas subsidiaries, enhancing their capacity for expansion and collaboration.
To qualify for Navratna status, a company must already hold the status of miniratna category I and be listed under Schedule A of CPSEs (Central Public Sector Enterprises).
List of Navratna Companies in India
| 1 | Engineers India Ltd (EIL) |
| 2 | Container Corporation of India Ltd (CONCOR) |
| 3 | Bharat Electronics Ltd (BEL) |
| 4 | Hindustan Aeronautics Ltd (HAL) |
| 5 | Neyveli Lignite Corporation Ltd (NLC India) |
| 6 | Rashtriya Ispat Nigam Ltd (RINL) |
| 7 | Rashtriya Chemicals & Fertilisers Ltd (RCF) |
| 8 | Mahanagar Telephone Nigam Ltd (MTNL) |
| 9 | National Buildings Construction Corporation Ltd (NBCC) |
| 10 | National Aluminium Company Ltd (NALCO) |
| 11 | National Mineral Development Corporation Ltd (NMDC) |
| 12 | Rail Vikas Nigam Ltd (RVNL) |
| 13 | Shipping Corporation of India Ltd (SCI) |
| 14 | ONGC Videsh Ltd (OVL) |
| 15 | RITES Ltd |
| 16 | IRCON International Ltd |
| 17 | IREDA Ltd |
In the January-March quarter, IREDA demonstrated improved margins and enhanced asset quality. Year-on-year, the company saw a notable 32% increase in net profit, maintaining consistency quarter-on-quarter at ₹337 crore.
During the March quarter, IREDA’s assets under management (AUM) experienced a significant growth of 26.8% compared to the previous year, reaching ₹59,698 crore. Additionally, the AUM grew by 18% when compared to the December quarter.
IREDA’s shares closed 2.2% higher in Friday’s trading session, reaching ₹170.95 per share on the NSE. Year-to-date, IREDA shares have delivered a remarkable return of over 63%, with a one-year return of 184%. The stock debuted on exchanges last year on November 29, witnessing an impressive surge of 87% from its issue price, marking it as one of the standout listings of the year.
Founded in March 1987, IREDA specializes in providing financial support to projects generating electricity from renewable and sustainable sources. The government maintains a significant 75% ownership stake in the company.
In a recent development, the company’s board has greenlit the formation of a subsidiary entity aimed at serving the retail market within the renewable energy sector. This subsidiary will focus on catering to emerging segments such as PM KUSUM, rooftop solar installations, and other business-to-consumer (B2C) ventures.
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