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Navratna Status of Rail Vikas Nigam Limited (RVNL)

Context:

Rail Vikas Nigam Limited (RVNL), a Central Public Sector Enterprise under the Ministry of Railways, has been granted Navratna status.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

  1. About  Rail Vikas Nigam Limited (RVNL):
  2. What is Navratna status and how does it benefit RVNL?
  3. What was RVNL’s previous status and when did it receive Navratna status?

About Rail Vikas Nigam Limited (RVNL):

  • RVNL is a Central Public Sector Enterprise under the Ministry of Railways.
  • It was established in 2003 to implement railway infrastructure projects and raise extra-budgetary resources for Special Purpose Vehicles (SPVs).
  • RVNL began operations in 2005 and is responsible for undertaking Rail project development and execution of works, creating project-specific SPVs, and handing over completed railway projects to the relevant Zonal Railway for operation and maintenance.

What is Navratna status and how does it benefit RVNL?

  • Navratna status is a recognition given by the Indian government to select public sector enterprises (PSEs) that have financial and operational autonomy.
  • The grant of Navratna status to RVNL provides it with more operational freedom, financial autonomy, and enhanced delegation of powers.
  • This status enables PSEs to invest up to Rs. 1000 crore without any approval from the central government, giving them more flexibility in decision making, personnel management, and joint ventures.
What was RVNL’s previous status and when did it receive Navratna status?
  • RVNL was granted Mini-Ratna status in 2013.
  • It has now been granted Navratna status.

-Source: The Hindu


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