In a key development, Cabinet Secretary TV Somanathan will preside over a meeting of an apex committee on September 23 to discuss upgrading Hindustan Aeronautics Ltd. (HAL) from its current ‘Navratna’ status to the coveted ‘Maharatna’ category, a senior government official said.
“The Cabinet secretary has called for a meeting of the apex committee on September 23 to consider the proposal for grant of Maharatna status to HAL,” the official told Moneycontrol.
The move comes after HAL’s impressive financial performance, including a 77 percent year-on-year rise in its consolidated net profit for Q1FY25. Granting Maharatna status would place HAL among India’s most influential public sector undertakings (PSUs), allowing it to invest up to Rs 5,000 crore or 15 percent of its net worth in a single project without needing prior government approval.
"The Maharatna status would significantly enhance HAL's operational autonomy, especially in capital expenditures for new purchases or replacements, without any monetary ceiling," the official added.
The most recent recipient of Maharatna status was Oil India, which received the designation in August last year. India currently has 13 Maharatna PSUs, including BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, and PFC.
For a company to be eligible for Maharatna status, it must have an average turnover of more than Rs 25,000 crore, an average annual net profit exceeding Rs 5,000 crore, and a net worth greater than Rs 15,000 crore over the last three years.
A promotion to Maharatna status would also provide HAL with greater financial independence compared to its current Navratna status, which allows investment of up to Rs 1,000 crore on a single project without government approval.
The Ministry of Defence (MoD) on September 9 had signed a contract with Hindustan Aeronautics Limited (HAL) for 240 AL-31FP Aero Engines for Su-30MKI aircraft at a cost of over Rs 26,000 crore. HAL would supply 30 aero-engines per annum as per the contractual delivery schedule. The supply of all 240 engines would be completed over the next eight years.
HAL plans to take support from the country’s defence manufacturing ecosystem, involving MSMEs and public and private industries.
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