IREDA became the 17th Navratna of India: 1 May 2024

Why in news?

• Recently, IREDA (Indian Renewable Energy Development Agency), was conferred with Navratna status by the Department of Public Enterprises (Ministry of Finance). 

About IREDA:

• 1987: Establishment Year.

• •  Administratively controlled by the Ministry of New and Renewable Energy (MNRE).

• Objective:

• Financing renewable energy projects and setting up solar manufacturing units.
• Encourage the use of renewable energy to foster sustainable growth.    

About Navratna Company:

• • A group of public-sector companies known as “Navaratna Companies” can make investments up to Rs. 1000 crores without the central government’s permission. 
  • Nine Public Sector Enterprises (PSEs) were initially granted the Navratna designation in 1997. 

• Criteria to get Navratna Status:

• • 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. 

• However, they need approval from the Cabinet Committee on Economic Affairs (CCEA) to make investments abroad.  
• To get Navratna status, the PSU should be a Miniratna-I, a Schedule A company, and should have obtained an excellent or very good MoU rating in three of the last five years.