Yes, Navratna policy helps in improving the performance of public sector undertakings. Navratana status is conferred to those PSU’s which perform exceptionally well i.e. either they are earning high profits or are producing goods which are contributing towards increasing the social welfare. This policy boosts the performance of all these PSU’s and encourages them to further improve their productivity. These PSU’s produce goods and services for masses and make them available to the masses at very nominal price which wouldn’t be possible if it was owned by the private sector. Navaratna status also sets benchmark for other PSU’s, which are not performing well or are making losses.