Context: 

Recently, the Union government approved the upgradation of the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) as Navratna companies.

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• With this upgrade, all seven listed Central Public Sector Enterprises (CPSEs) of Indian Railways now have Navratna status.
• The Department of Public Enterprises (DPE) of the Ministry of Finance picks the CPSEs for Navratna status.
• Now, India has a total of 26 Navratna companies.

Benefits of 'Navratna' status

• They have greater independence in forming joint ventures and entering into technology or marketing agreements.
• This status grants them greater autonomy in decision-making, and allows them to compete more effectively in domestic and international markets.

Indian Railway Catering and Tourism Corporation (IRCTC)

• IRCTC was incorporated in 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations.
• IRCTC functions under the Ministry of Railways, Government of India. 
• Head office: New Delhi.

Indian Railway Finance Corporation (IRFC)

• IRFC was established in 1986 as the dedicated financing arm of Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.
• The primary objective of IRFC is to meet the predominant portion of the ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms.
• Since its inception, IRFC has funded the acquisition of 13,349 locomotives, 73,979 passenger coaches and 2,59,661 freight wagons.
• Head office: New Delhi.

Classification of Central Public Sector Enterprises (CPSEs)

• The government classifies Public Sector Undertakings (PSUs) into three groups, i.e. Maharatna, Navratna, and Miniratna.
• The main aim of assigning the "ratna" statuses to various CPSEs was to give operational freedom and decision-making power to the state-run entities.