To qualify as a Navratna, PSEs having a Miniratna-I status must obtain an “Excellent” or “Very Good” Memorandum of Understanding (MoU) rating in three out of the last five years and have a composite score of 60 or more in six selected performance indicators, namely,

• Net Profit to Net Worth
• Manpower Cost to Total Cost of Production
• Profit before depreciation, Interest and taxes (PBDIT) to capital employed
• Profit before Interest and taxes to turnover
• Earnings Per Share
• Inter-Sectoral Performance

Some key benefits of Navratna status:

• Financial Independence: They invest up to ₹1,000 crore without seeking approval from the central government.
• Navratna companies are also allowed to invest up to 15% of their net worth on a single project, or 30% of their net worth in a given year, subject to a cap of ₹1,000 crore.
• To incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling.
• To enter into technology joint ventures or strategic alliances.

Navratna Public Sector Enterprises (PSEs) in India have been actively implementing sustainability initiatives to align with national and global environmental goals. These initiatives include large-scale renewable energy adoption, energy efficiency improvements, water conservation projects, and afforestation drives. Many Navratna PSEs are investing in green hydrogen, carbon capture, and sustainable supply chains to reduce their carbon footprint. Additionally, they focus on waste management, circular economy practices, and community-led sustainability programs. Through these efforts, Navratna PSEs are not only enhancing their environmental performance but also contributing to India’s commitment to sustainable development and climate resilience.