IREDA to get 'Schedule A' tag soon, will then chase Navratna status: Sources

New Delhi: IREDA, a Miniratna Category-I PSU under the Ministry for New and Renewable Energy (MNRE), is close to getting Schedule A status, two top sources aware of the matter told PSU Watch. The proposal is in advanced stages, an announcement is likely to be made soon and will pave the way for Indian Renewable Energy Development Agency (IREDA) to pursue the Navratna status, said the sources. The news comes days after Solar Energy Corporation of India (SECI), another MNRE PSU, got Miniratna Category-I status.

The classification of PSUs into Schedule A, B, C and D is done on the basis of quantitative factors like investment (paid-up capital and long-term loans), capital employed (net block and net working capital), net sales, profit, number of employees, number of units, etc, and qualitative factors like national importance, complexities of problems, level of technology, prospects for expansion and diversification of activities and competition from other sectors. In addition, other factors like the image of the CPSE (in terms of its share price, MoU ratings, classification as Navratna/Miniratna), productivity of the PSU (in terms of capacity utilisation) and value-added per employee are also taken into account.

‘Schedule A status will clear way for IREDA to apply for Navratna status’

“IREDA is actually eyeing the Navratna status. However, there is a process for it. A Miniratna Category-I PSU can become a Navratna only if it is a Schedule A PSU. So, the Schedule A category will clear the way for IREDA to apply for Navratna status,” said one of the two sources quoted above.

There are three criteria for classifying a CPSE as a Navratna. The CPSE should be a Miniratna I and Schedule A company. It should have obtained ‘excellent’ or ‘very good’ rating in three of the last five MoUs. The CPSE should have obtained a composite score of 60 or more, calculated with reference to seven specified parameters/ratios. It is worth noting that IREDA has received ‘excellent’ rating in MoUs for the year 2020-21 and 2021-22.

IREDA reported a profit after tax (PAT) of Rs 634 crore and profit before tax (PBT) of Rs 834 crore in the FY 2021-22. The loan book of IREDA grew from Rs 27,854 crore in FY2020-21 to Rs 33,931 crore FY2021-2022.

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