NEWS  – Indian Renewable Energy Development Agency public sector undertaking company was granted ‘Navratna status’ from the department of public enterprises.

INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY

• Under MNRE’s administrative control.
• Public Limited Government Company, established in 1987 as an NBFC.
• Notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 + Registered as an NBFC with RBI
• Core Activities: Promotes, develops, and extends financial assistance for new and renewable energy projects and energy efficiency
• Motto: “Energy for Ever.”
• Funding Mechanisms: Revenue from interest, principal repayments, market funds, and borrowings.Top of Form

NAVRATNA STATUS:

• The government categorises all Public Sector Undertakings (PSUs) into three categories, namely Maharatna, Navratna, and Miniratna.
• The Government had introduced the ‘Navratna’ scheme in 1997.
• Criteria for Navratna status
  • A PSU should be a Miniratna-I, Schedule ‘A’company, should have obtained an ‘excellent’ or ‘very good’ MoU rating in three of the last five years, and must have a composite score of 60 in six performance indicators.
  • It must report a net profit of more than Rs 5,000 crore for three consecutive years, and maintain an average annual turnover of Rs 25,000 crore for three years, or have an annual average net worth of over Rs 15,000 crore for three years.
• Benefits
  • Financial Independence: They invest up to ₹1,000 crore without seeking approval from the central government.
  • Navratna companies are also allowed to invest up to 15% of their net worth on a single project, or 30% of their net worth in a given year, subject to a cap of ₹1,000 crore.
  • To incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling.
  • To enter into technology joint ventures or strategic alliances.