SJVN Ltd, NHPC Ltd and RailTel Corporation of India Ltd are three listed stocks in focus today after the government granted 'Navratna' status to the PSU firms. The Department of Public Enterpsies (DPE), Ministry of Finance, government of India, has conveyed that the competent authority has approved the proposal for grant of Navratna status to NHPC, the PSU said in a BSE filing. SJVN and RailTel also made similar statements on stock exchanges.
There were a total of 16 Navratna CPSEs, 13 Maharatnas, 55 Miniratna I CPSEs and 11 Miniratna II CPSEs till last month. In the listed space, IREDA and HUDCO were granted Navratna status earlier this year. Railway stock RailTel is up 112 per cent in the past one year. SJVN has climbed 105 per cent during the same period. NHPC shares almost doubled from October 2023 low of Rs 48.48 apiece.
SJVN In the case of SJVN, Sushil Sharma, Chairman & Managing Director said the Navratna status is conferred upon select CPSEs that have consistently demonstrated exceptional financial performance and managerial efficiency.
"This will allow us greater financial and operational freedom to further our business interests and contribute to nation’s energy security. The Navratna status not only recognizes SJVN's past achievements but also sets the stage for us to undertake larger projects, form strategic partnerships and contribute more significantly to government’s vision of achieving 500 GW of renewable energy capacity by 2030,” he said.
He noted that SJVN can now make investment on its projects without any financial ceiling, thereby accelerating the growth path of the company. "Additionally, company can invest up to 30 per cent of its net worth annually, further fueling its ambitious expansion plans. This enhanced autonomy also allows SJVN to form joint ventures, set up overseas subsidiaries and undertake organizational restructuring to optimize its operations," a PIB statement suggested him as saying.
SJVN was accorded the coveted Miniratna status in 2008. Currently, SJVN boasts a project portfolio of 56,802.4 MW, with thirteen projects totaling 2466.5 MW of installed capacity under operation and 75 projects under various stages of implementation across hydro, solar, wind, thermal, and transmission lines.
NHPC The conferring of Navratna status brings forth key advantages to NHPC. It will enable faster decision-making, increase efficiency and empower employees. It will support major capex and investment plans, drive growth, expand market reach and achieve long-term gains.
"NHPC will have enhanced powers to establish joint ventures and overseas offices, access new markets and leverage local expertise. Additionally, it will foster innovation by furthering technological alliances and strengthening market positioning. It will also facilitate mergers and acquisitions leading to growth and increased market share," a PIB release suggested.
Currently, NHPC's total installed capacity is 7144.20 MW and the company is presently engaged in the construction of projects aggregating to 10442.70 MW. These include the 2000 MW Subansiri Lower project (Assam/ Arunachal Pradesh) and 2880 MW Dibang Multi-purpose project (Arunachal Pradesh). At present, NHPC is working on more than 50000 MW capacity projects which are under various stages of development. NHPC is steadfastly working towards achieving an installed capacity of 23000 MW by 2032 and 50000 MW by 2047.
RailTel In a filing to BSE, RailTel said: "we are pleased to inform you that Department of Public Enterprises, Ministry of Finance, Government of India vide its letter no PD-1-26/0002/2024-DPE dated August 30, 2024, has granted “Navratna Status” to RailTel Corporation of India Ltd."
RailTel last week said it received a work order from Eastern Railway for Works amounting to Rs 70,93,58,570, including tax.