Mazagon Dock Granted Navratna Status by Dept of Public Enterprises

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Synopsis:

Mazagon Dock Shipbuilders receive Navratna status, becoming India's 18th PSU to achieve this. The company can now undertake investments up to ₹1,000 crore without needing prior approval from the central government. Additionally, Navratna companies can invest up to 30% of their net worth within a year.

Mazagon Dock Shipbuilders News Today

Mazagon Dock Shipbuilders has been granted "Navratna" status by the Department of Public Enterprises, as per an exchange filing. This designation makes it the 18th Public Sector Undertaking (PSU) in India to receive such status.

Mazagon Dock now stands alongside prominent companies like Engineers India, CONCOR, Bharat Electronics, Hindustan Aeronautics, RCF, NALCO, NMDC, RVNL, IRCON, and IREDA.

Explore:Mazagon Dock Shipbuil Ltd Share Price

Financial Autonomy and Investment Capabilities

With the new Navratna status, Mazagon Dock Shipbuilders gained significant financial and operational autonomy. The company can now undertake investments up to ₹1,000 crore without needing prior approval from the central government.

Additionally, Navratna companies can invest up to 30% of their net worth within a year, provided the total does not exceed ₹1,000 crore. This status also permits the formation of JVs, alliances, and the establishment of subsidiaries abroad, enhancing the company's strategic flexibility.

Criteria for Navratna Status

To be eligible for Navratna status, a PSU must first hold Miniratna status and meet specific financial benchmarks. These include:

  • Reporting a net profit of at least ₹5,000 crore for three consecutive years and
  • Maintaining an average annual turnover of over ₹25,000 crore or an average annual net worth of over ₹15,000 crore for three years.

Future Prospects

In April 2024, IREDA also received Navratna status from the Department of Public Enterprises. Inspired by this achievement, IREDA aims to attain Maharatna status by 2030, signalling the potential for further elevation in the status of PSUs like Mazagon Dock Shipbuilders as they continue to meet and exceed performance benchmarks.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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