SOURCE: AFI
Hindustan Aeronautics Limited (HAL), India’s premier aerospace company, is eyeing a significant upgrade in its status. The government is considering elevating HAL from its current “Navratna” status to the coveted “Maharatna” category, a move that would significantly enhance the company’s operational autonomy and financial independence.
Cabinet Secretary TV Somanathan is set to preside over a meeting of an apex committee on September 23 to discuss this proposal. The official said, “The Cabinet secretary has called for a meeting of the apex committee on September 23 to consider the grant of Maharatna status to HAL.”
The Maharatna status would empower HAL with greater flexibility in its capital expenditures, allowing it to invest in new purchases or replacements without seeking prior government approval. This increased autonomy would be particularly beneficial for the company’s R&D initiatives, such as the development of Manned-Unmanned Teaming (MUM-T) drone.
Currently, as a Navratna company, HAL is allowed to invest up to Rs 1,000 crore on a single project without government approval. The Maharatna status would remove this ceiling, granting the company even more financial freedom.
The proposed upgrade is expected to boost HAL’s operational efficiency and competitiveness, enabling it to play a more significant role in India’s aerospace sector. By securing Maharatna status, HAL would join a select group of central public sector enterprises, including Indian Oil Corporation, Bharat Heavy Electricals Limited, and Steel Authority of India Limited.