Hindustan Aeronautics Limited (HAL) has been upgraded to the status of Maharatna, making it the 14th Central Public Sector Enterprise (CPSE) to receive this prestigious classification from the Government of India. This announcement, made on October 12, enhances HAL’s operational autonomy and financial capabilities, allowing it to invest up to 15% of its net worth in projects and up to ₹5,000 crore in foreign ventures without government approval. The stock price responded positively, trading at ₹4,510, reflecting a 1.42% increase.
Key Details of HAL’s Maharatna Status
Approval Process: The upgrade was approved by Finance Minister Nirmala Sitharaman, following recommendations from the Inter-Ministerial Committee and the Apex Committee.
Performance Metrics: To qualify for Maharatna status, HAL had to demonstrate an average annual turnover exceeding ₹25,000 crore, a net worth of over ₹15,000 crore, and a net profit exceeding ₹5,000 crore over the past three years.
Current Maharatna Companies: HAL joins the ranks of other Maharatna PSUs such as NTPC, ONGC, BHEL, and Indian Oil Corporation, which have shown substantial operational success.
Criteria for Maharatna Status
To qualify for Maharatna status, CPSEs must first hold Navratna status and meet stringent financial criteria, including:
- Average Annual Turnover: Exceeding ₹25,000 crore.
- Average Annual Net Worth: More than ₹15,000 crore.
- Average Annual Net Profit: Over ₹5,000 crore for the past three years
Financial Highlights
For the first quarter of FY25, HAL reported a 76.5% increase in net profit, reaching ₹1,437.2 crore compared to ₹814.2 crore in the same period last year. Revenue also saw an 11% year-on-year growth, indicating robust financial health.
The Maharatna Advantage
The Maharatna status not only allows HAL greater autonomy in decision-making but also empowers it to engage in mergers, acquisitions, and strategic investments without prior government approval. This status is crucial for enhancing HAL’s potential to compete globally and undertake significant projects in the defense sector.
Maharatna Companies in India as of 2024
| S.No. | Company Name | Established Year |
|---|---|---|
| 1 | Bharat Heavy Electricals Limited (BHEL) | 1964 |
| 2 | Bharat Petroleum Corporation Limited (BPCL) | 1952 |
| 3 | GAIL India Limited (GAIL) | 1984 |
| 4 | Coal India Limited (CIL) | 1975 |
| 5 | Hindustan Petroleum Corporation Limited (HPCL) | 1974 |
| 6 | Steel Authority of India Limited (SAIL) | 1954 |
| 7 | National Thermal Power Corporation (NTPC) | 1975 |
| 8 | Rural Electrification Corporation Limited (REC) | 1969 |
| 9 | Power Finance Corporation (PFC) | 1986 |
| 10 | Power Grid Corporation of India Limited (POWERGRID) | 1989 |
| 11 | Indian Oil Corporation Limited (IOCL) | 1959 |
| 12 | Oil & Natural Gas Corporation Limited (ONGC) | 1956 |
| 13 | Oil India Limited (OIL) | 1959 |
| 14 | Hindustan Aeronautics Limited (HAL) | 1940 |
HAL’s Maharatna Status
| Why in News | Key Points |
|---|---|
| HAL’s Maharatna Status | Hindustan Aeronautics Limited (HAL) upgraded to Maharatna status, becoming the 14th CPSE to achieve this recognition. |
| Approval and Criteria | Upgrade approved by Finance Minister Nirmala Sitharaman. HAL met criteria: ₹25,000 crore turnover, ₹15,000 crore net worth, and ₹5,000 crore net profit in the last three years. |
| Financial Highlights | HAL reported a 76.5% rise in net profit for Q1 FY25, reaching ₹1,437.2 crore, with 11% revenue growth YoY. |
| Maharatna Advantage | HAL gains enhanced autonomy, enabling investments up to ₹5,000 crore and ventures without government approval. |
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