NHPC Granted 'Navratna' Status By Govt

The Government of India has bestowed the esteemed Navratna status on NHPC, a Central Public Sector Enterprise.

What Happened: NHPC announced on Thursday, August 30, 2024, that the Department of Public Enterprises (DPE), under the Ministry of Finance, has approved the proposal to grant Navratna Status to the company. This was communicated via an official memorandum (O.M.) dated August 30, 2024.

The Navratna status is a significant accolade for public sector enterprises in India, providing them with enhanced financial and operational autonomy. With this status, NHPC Limited will now enjoy greater freedom in decision-making and investments. These companies are empowered to execute investments up to ₹1,000 crore without needing central authority approval.

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Under this status, PSUs can invest up to 30% of their net worth annually, as long as the total investment does not exceed ₹1,000 crore. They are also permitted to engage in joint ventures, form partnerships, and establish subsidiaries abroad, enhancing their strategic and operational flexibility.

Before this, Mazagon Dock was awarded the Navratna status back in June.

This recognition comes at a time when NHPC Limited is planning to nearly double its bottom line to ₹7,000 crore in FY27-28, as reported by Chairman and Managing Director Raj Kumar Chaudhary in an interview. The company expects its net profit for FY25 to remain steady at around ₹4,000 crore, but anticipates a significant increase to ₹7,000 crore in FY27-28. This growth is expected to be driven by the commissioning of Parbati I, II, III and Subansiri projects.

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