SOURCE: AFI
Hindustan Aeronautics Limited (HAL), a state-run aerospace and defense company, is poised to receive a significant upgrade in its status. According to a senior finance ministry official, HAL is likely to be elevated from its current Navratna category to the coveted Maharatna category by the end of 2024.
The Maharatna status confers greater operational and financial autonomy on a company’s board. This includes the authority to make project investments up to Rs 5,000 crore without seeking government approval. In contrast, Navratna companies are limited to making autonomous project investments of up to Rs 1,000 crore.
Currently, India has 13 Maharatna public sector undertakings, including BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, and PFC. To qualify for Maharatna status, a company must meet certain financial criteria, including an average turnover of over 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 during the last three years.
The upgrade to Maharatna status will not only enhance HAL’s operational efficiency but also enable it to pursue larger and more ambitious projects. This development is expected to further strengthen India’s aerospace and defense capabilities.