On 12th October 2024, the Department of Public Enterprise (DPE) under the Ministry of Finance (MoF) upgraded the status of Hindustan Aeronautics Limited (HAL) from “Navratna” Central Public Sector Enterprises (CPSE) to the “Maharatna”. With this, HAL becomes the 14th “Maharatna” CPSE in India.
- This upgrade is based on the recommendations of the Inter Ministerial Committee (IMC) chaired by the Finance Secretary, MoF and the Apex Committee led by the Cabinet Secretary.
- The new status will enhance HAL’s operational autonomy and financial powers as now; it can make investments up to 15% of its net worth in projects and can invest maximum Rs 5,000 crore in foreign ventures without the approval of the Government of India (GoI).
Note: Oil India Limited (OIL), the 2nd largest National Exploration & Production (E&P) Company in India, became the 13th Maharatna CPSE in August 2023.
Strategic Significance of HAL:
i.HAL plays a pivotal role in defence capabilities of India, focusing on self-reliance in military aviation for instance: the indigenous developments of the Light Combat Aircraft (LCA) namely Tejas and the Light Utility Helicopter (LUH).
ii.On 9th September 2024, the Ministry of Defence (MoD) signed a contract worth Rs 26,000 crore with HAL for procurement of 240 AL-31FP Aero Engines for Su-30MKI aircraft of the Indian Air Force (IAF). This contract marks a major step in India’s drive towards self-reliance under the Aatmanirbhar Bharat initiative.
iii.HAL recorded an annual turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore for the financial year 2023-24.
Maharatna Scheme:
i.Initially, the Government of India (GoI) introduced the “Navratna” scheme in 1997 to identify and promote CPSEs in India and help them in becoming global leaders.
ii.Later, GoI introduced “Maharatna” scheme in 2010, to recognise companies with their potential to become Indian Multinational Companies (MNCs).
- This higher status incentivizes Navratna companies, which help them in enhancing their brand value, and allows for the delegation of more powers to CPSEs, fostering growth and international competitiveness.
iii.The scheme mainly focuses on empowering specific Navratna CPSEs to facilitate the expansion of their operations and emerge as global giants by increasing their market share both in domestic and international markets.
Criteria for Maharatna status to CPSEs:
i.It should be listed on Indian Stock Exchange with a minimum prescribed public shareholding under Securities and Exchange Board of India(SEBI) regulations.
ii.The company should possess Navratna status.
iii.The CPSEs should have an annual net worth of Rs15,000 crore for 3 years or average annual turnover of 25,000 crore consecutively for 3 years.
iv.The CPSE should have an average annual net profit after tax of over Rs 5,000 crore consecutively for 3 years.
v.CPSE should have significant global presence or international operations.
Maharatna Companies In India:
i.Bharat Heavy Electrical Limited (BHEL), New Delhi(Delhi)
ii.Bharat Petroleum Corporation Limited (BPCL), Mumbai(Maharashtra)
iii.Coal India Limited (CIL), Kolkata(West Bengal, WB)
iv.GAIL India Limited (GAIL), New Delhi
v.Hindustan Petroleum Corporation Limited(HPCL), visakhapatnam, (Andhra Pradesh, AP)
vi.Indian Oil Corporation Limited (IOCL), New Delhi
vii.Oil and Natural Gas Corporation Limited (ONGC), New Delhi
viii.Power Finance Corporation (PFC), New Delhi
ix.Power Grid Corporation India Limited (POWERGRID), Gurugram(Haryana)
x.Steel Authority of India Limited (SAIL), New Delhi
xi.Rural Electrification Corporation Limited (REC), New Delhi
xii.Oil India Limited (OIL), Noida(Uttar Pradesh, UP)
xiii.NTPC Limited (NTPC), New Delhi
About Hindustan Aeronautics Limited (HAL):
HAL is a Department of Defence Production (DOPD) CPSE under the Ministry of Defence (MoD). It has specialization in manufacturing of engines, communication equipment, navigation equipment, display systems, hydraulic systems, among others.
Chairman and Managing Director (CMD)- Dr. D.K. Sunil
Headquarters- Bengaluru, Karnataka
Established – 1940
