HAL Becomes India’s 14th PSU to Attain Maharatna Status

14 Oct 2024 , 10:30 AM

Hindustan Aeronautics Limited (HAL) was granted Maharatna status by the Department of Public Enterprises on October 12, as announced through X (formerly Twitter).

The decision to upgrade HAL’s status was approved by Finance Minister Nirmala Sitharaman after recommendations from two high-level committees—the Inter-Ministerial Committee (IMC), led by the Finance Secretary, and the Apex Committee, chaired by the Cabinet Secretary.

With this move, HAL becomes India’s 14th Maharatna Central Public Sector Enterprise (CPSE), joining other prominent companies such as Bharat Heavy Electricals Limited (BHEL), Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation (IOC).

HAL, which operates under the Department of Defence Production (DoDP), achieved a turnover of ₹28,162 Crore and a net profit of ₹7,595 Crore for the financial year 2023-24.

The newly awarded Maharatna status grants HAL increased operational and financial autonomy, enabling the company to make investments of up to 15% of its net worth in various projects.

HAL can now invest up to ₹5,000 Crore in foreign ventures without seeking government approval, offering more flexibility in international expansions.

The Maharatna status provides HAL with greater freedom in making decisions related to mergers, acquisitions, and capital expenditures, reducing reliance on government approval.

For a Public Sector Enterprise (PSE) to achieve Maharatna status, it must meet specific financial criteria, including an average turnover exceeding ₹25,000 Crore, an average annual net worth of more than ₹15,000 Crore, and an average net profit of over ₹5,000 Crore over the past three years.

Prior to HAL’s elevation, Oil India was the most recent company to receive Maharatna status, which it achieved in August of the previous year.

By attaining Maharatna status, HAL is positioned to play a larger role in India’s economic and industrial growth while minimizing its dependency on government oversight and approvals.