HAL elevated to Maharatna status; becomes 14th PSU in the coveted list

New Delhi: Hindustan Aeronautics Limited (HAL), a prominent public sector enterprise under the Department of Defence Production (DoDP), has officially been granted Maharatna status. The upgradation has been approved by the Finance Minister following recommendations from the Inter-Ministerial Committee (IMC) chaired by the Finance Secretary, and the Apex Committee headed by the Cabinet Secretary.

PSU Watch is now on Whatsapp Channels. Click here to join

This recognition marks HAL’s entry into the prestigious group of 14 Maharatna Central Public Sector Enterprises (CPSEs), a status that allows for greater financial autonomy and increased operational flexibility in making strategic decisions. This move is expected to enhance HAL’s ability to undertake larger investments and expansion initiatives, strengthening its leadership in the aerospace and defense sector.

List of Maharatna PSUs

1. BHEL

2. BPCL

3. HPCL

4. Coal India

5. GAIL (India) Limited

6. Indian Oil

7. NTPC

8. ONGC

9. Power Grid

10. SAIL

11. Oil India Limited

12. PFC Limited

13. REC Limited and

14. HAL

HAL, which plays a crucial role in India’s defence production capabilities, reported impressive financial results for the fiscal year 2023-24, with a turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore. These financial milestones underscore the company's robust performance and align with the criteria for Maharatna eligibility, which includes a minimum annual turnover of Rs 25,000 crore and a net profit of Rs 5,000 crore over the past three years.

As a Maharatna PSU, HAL will now have greater freedom to pursue joint ventures, acquisitions, and investments, both domestically and internationally, without requiring prior approval from the government for certain key decisions. This will help the company scale up its operations and further support India’s defense and aerospace objectives.

The Maharatna status is considered a significant honor for CPSEs, aimed at recognizing outstanding performance, empowering the management, and giving more independence to these enterprises to compete on the global stage. HAL’s elevation reflects the government’s confidence in its capabilities and strategic importance to the country’s defense and industrial sectors.

This development aligns with the government’s ongoing efforts to bolster the nation’s self-reliance in defense manufacturing under the Make in India initiative, positioning HAL to expand its footprint in both domestic and global markets.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)