HAL upgraded to ‘Maharatna’ status, becomes 14th PSU to join elite group

With this upgrade, HAL becomes the 14th Maharatna CPSE, a status that will further enhance its operational autonomy and financial powers.

Hindustan Aeronautics Limited (HAL) has been elevated to the status of Maharatna Central Public Sector Enterprise (CPSE). The Department of Public Enterprises announced the upgradation on October 12 through a post on X (formerly Twitter), following the approval of Finance Minister Nirmala Sitharaman.

The proposal for HAL's upgradation was earlier recommended by two high-level committees: the Inter-Ministerial Committee (IMC), headed by the Finance Secretary, and the Apex Committee, chaired by the Cabinet Secretary.

Honble 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

HAL, which operates under the Department of Defence Production (DoDP), recorded an annual turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore for the financial year 2023-24. With this upgrade, HAL becomes the 14th Maharatna CPSE, a status that will further enhance its operational autonomy and financial powers.

Oil India was the most recent company to receive "Maharatna" status from the government, which was granted in August of last year.

India now has 14 "Maharatna" public sector undertakings (PSUs), including prominent names such as BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and the recently upgraded Hindustan Aeronautics Limited (HAL).

To qualify for Maharatna status, a company must meet stringent financial criteria: an average turnover exceeding Rs 25,000 crore, an average annual net worth of more than Rs 15,000 crore, and an average annual net profit of over Rs 5,000 crore over the past three years.

Maharatna status grants PSUs greater autonomy, allowing them to incur capital expenditure on new purchases or replacements without any monetary limit. Additionally, these companies are required to operate independently, without relying on budgetary support or government guarantees.

For comparison, Navratna status also offers enhanced financial and operational freedom, enabling companies to invest up to ₹1,000 crore or 15% of their net worth in a single project without needing prior government approval.