HAL is now a Maharatna; to get higher autonomy, strategic flexibility

The central government has granted the ‘Maharatna’ status to Hindustan Aeronautics Ltd (HAL). The Department of Public Enterprises informed us about HAL's upgrade to the 14th Maharatna company in India from its official ‘X’ channel account. The DPE said on Saturday that Finance Minister Nirmala Sitharaman has given her nod to upgrade the Indian PSU to Maharatna status.

“Hon’ble Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th Maharatna CPSE. The proposal has earlier been recommended by the Inter-Ministerial Committee (IMC) headed by the Finance Secretary and the Apex Committee headed by the Cabinet Secretary. HAL is a Department of Defence Production (DoDP) CPSE with an annual turnover of Rs. 28162 crore and net profit of Rs. 7595 crore for FY 2023-24.”

More autonomy  

After the Maharatna status, the HAL will have greater autonomy, higher investment capability, and strategic flexibility. Now, the HAL can invest up to ₹5,000 crore or 15% of its net worth (whichever is applicable in the future) in a single project without requiring any government approval.

 Like any other Maharatna company, the HAL will have the freedom to undertake mergers, acquisitions, and strategic investments both domestically and internationally.

The other 13 Maharatna companies 

1] National Thermal Power Corporation (NTPC) Ltd

2] Oil and Natural Gas Corporation (ONGC) Ltd

3] Steel Authority of India Limited (SAIL)

4] Bharat Heavy Electricals Limited (BHEL)

5] Indian Oil Corporation Limited (IOCL)

6] Hindustan Petroleum Corporation Limited (HPCL)

7] Coal India Limited (CIL)

8] GAIL India Limited

9] Bharat Petroleum Corporation Limited (BPCL)

10] Power Grid Corporation of India Limited

11] Power Finance Corporation (PFC)

12] Rural Electrification Corporation (REC) Limited

13] Oil India Ltd (OIL).

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