Government of India upgrades HAL to 'Maharatna' status, enhancing operational autonomy and financial powers
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| Image Source:Department of Public Enterprises X/@DPE_GoI |
Hindustan Aeronautics Limited (HAL) has been awarded the prestigious Maharatna status as a Central Public Sector Enterprise (CPSE). The Department of Public Enterprises made this announcement on October 12 through a message on X (formerly Twitter), following the approval from Finance Minister Nirmala Sitharaman.
Hon’ble Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th #Maharatna CPSE. The proposal has earlier been recommended by Inter-Ministerial Committee (IMC) headed by Finance Secretary and Apex Committee headed by Cabinet Secretary. HAL is… pic.twitter.com/xBR18okU74
— Department of Public Enterprises (@DPE_GoI) October 12, 2024
The upgrade for HAL was initially proposed by two high-level committees: the Inter-Ministerial Committee (IMC), led by the Finance Secretary, and the Apex Committee, chaired by the Cabinet Secretary.
Operating under the Department of Defence Production (DoDP), HAL achieved an annual turnover of ₹28,162 crore and a net profit of ₹7,595 crore for the financial year 2023-24. With this recognition, HAL becomes the 14th Maharatna CPSE, a status that will significantly bolster its operational independence and financial capabilities.
The last entity to be awarded "Maharatna" status was Oil India, which received this designation in August of the previous year.
India now boasts 14 "Maharatna" public sector undertakings (PSUs), which include well-known companies such as BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and the newly elevated Hindustan Aeronautics Limited (HAL).
To achieve Maharatna status, a company must satisfy strict financial benchmarks: an average turnover of over ₹25,000 crore, an average annual net worth exceeding ₹15,000 crore, and an average annual net profit of more than ₹5,000 crore over the past three years.
With Maharatna status, PSUs gain enhanced autonomy, allowing them to undertake capital expenditure for new acquisitions or replacements without any financial limits. These companies must also operate independently, without depending on budgetary allocations or government guarantees.
In contrast, Navratna status offers similar financial and operational freedoms but permits companies to invest up to ₹1,000 crore or 15% of their net worth in a single project without prior government consent.
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