Navratna status for IRCTC, IRFC enhances market perception, stakeholder's confidence: Govt

New Delhi, Mar 26 (PTI) The Navratna status for IRCTC and IRFC will enhance market perception, stakeholder's confidence and most importantly, employee morale and motivation, the government said in a written reply in the Lok Sabha on Wednesday.

Congress MP Vijay Vasanth raised the issue of Navratna status for Indian Railways Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC), demanding details of the breakup of their financial performance that led to their elevation to Navratna status. He also asked, among other issues, whether this is expected to increase transparency and accountability in their operations.

"IRCTC's and IRFC's Revenue from Operations grew at Compounded Annual Growth Rate (CAGR) of more than 17% and 14% respectively while Net-worth, Earning Before Interest, Depreciation and Taxes (EBIDTA) and Profit after tax during the last 5 years grew with CAGR of more than 20% and 10%, respectively," Railway Minister Ashwini Vaishnaw said.

"Being listed CPSEs, IRCTC and IRFC are governed through various rules, regulations and guidelines, in particular Companies Act 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations and guidelines issued by DPE (Department of Public Enterprises)," he added.

The Railway Minister maintained that these two companies maintain the highest standards of governance abiding by basic principles of corporate governance by means of strong internal controls, code of conduct and schedule of powers (SoP).

"The Navratna status for IRCTC and IRFC will enhance market perception, stakeholder's confidence and most importantly, employee's morale and motivation," Vaishnaw said.

"The employees can be better incentivised through allowances, increments and introduction of staff welfare scheme as per extant guidelines. It will facilitate retention of employees and attract skilled talented manpower," the minister added. PTI JP JP KSS KSS

Source: PTI