New Delhi [India], October 12 (ANI): The central government has upgraded Hindustan Aeronautics Limited (HAL) as the 14th Maharatna Central Public Sector Enterprises (CPSE), the Department of Public Enterprises said in a post on social media X on Saturday.
The Maharatna status will further enhance its operational autonomy and financial powers with promising future projects and growth. It can now make investments up to 15 per cent of its net worth in projects and invest up to Rs 5,000 crore in foreign ventures without government approval.
“Hon’ble Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th #Maharatna CPSE. The proposal has earlier been recommended by the Inter-Ministerial Committee (IMC) headed by the Finance Secretary and Apex Committee headed by Cabinet Secretary,” the Department of Public Enterprises stated in the post on X.
The other 13 Central Public Sector Enterprises that are classified as Maharatna are NTPC Limited (NTPC), Oil and Natural Gas Corporation Limited (ONGC), Steel Authority of India Limited (SAIL), Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), Coal India Limited (CIL), GAIL India Limited (GAIL), Bharat Petroleum Corporation Limited (BPCL), Power Grid Corporation of India Limited (POWERGRID), Power Finance Corporation, Rural Electrification Corporation Limited and Oil India Ltd.
HAL is a Department of Defence Production (DoDP) CPSE with an annual turnover of Rs. 28162 crore and net profit of Rs. 7595 crore for FY 2023-24.
HAL manufactures Engines, Communication equipment, Navigation equipment, Display systems, Hydraulic systems, Electric equipment, etc., required for aircraft and helicopters.
Earlier in September this year, the Ministry of Defence (MoD) signed a contract with the state-owned company for 240 AL-31FP Aero Engines for Su-30MKI aircraft at a cost of over Rs 26,000 crore.
These aero-engines will be manufactured by the Koraput Division of HAL and are expected to fulfill the need of the Indian Air Force to sustain the operational capability of the Su-30 fleet for the defense preparedness of the country.
HAL will supply 30 aero-engines per annum as per the contractual delivery schedule. The supply of all 240 engines would be completed over the period of the next eight years.
CPSEs eligible for Maharatna status must hold Navratna status and be listed on the Indian stock exchange with the minimum public shareholding as per SEBI regulations.
CPSEs should have an average annual turnover exceeding Rs 25,000 crore and an average annual net worth of over Rs 15,000 crore in the past three years. Additionally, they must achieve an average annual net profit after tax of more than Rs 5,000 crore during the same period and possess a significant global presence or international operations, as per the official statement.
Notably, Maharatna companies have the freedom to undertake mergers, acquisitions, and strategic investments both domestically and internationally. The status aims to empower these companies to expand their operations and emerge as global giants.
The Government of India classifies Central Public Sector Enterprises (CPSEs) into three categories–Maharatna, Navratna, and Miniratna. (ANI)
