Hindustan Aeronautics Limited becomes 14th Maharatna company – Times of India

NEW DELHI: Central Govt has improved Hindustan Aeronautics Limited (HAL) as the 14th Maharatna Central public sector enterprises (CPSE), on Department of Public Enterprises X said in a social media post on Saturday.
The Maharatna the status will further enhance its operational autonomy and financial powers with promising future projects and growth. It can now make investments of up to 15 percent 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 was earlier recommended by the Inter-Ministerial Committee (IMC), headed by the Finance Secretary, and the Apex Committee, headed by the Cabinet Secretary,” the Ministry of Public Enterprises said in the release of X.
The other 13 Central Public Sector Undertakings which 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 Defense Production (DoDP) CPSE with an annual turnover of Rs. 28162 crores and a net profit of Rs. 7,595 crores for FY 2023-24.
HAL manufactures engines, communication equipment, navigation equipment, display systems, hydraulic systems, electrical equipment, etc. required for aircraft and helicopters.
Earlier in September this year, the Ministry of Defense (MoD) signed a contract with the state-owned company for 240 AL-31FP aero engines for Su-30MKI aircraft worth over Rs 26,000 crore.
These aero engines will be manufactured by HAL’s Koraput division and are expected to cater to the needs of Indian Air Force to maintain the operational capability of the Su-30 fleet for the defense readiness of the country.
HAL will deliver 30 aircraft engines per year as per the contractual delivery schedule. Delivery of all 240 engines will be completed over the next eight years.
CPSEs eligible for Maharatna status must hold Navratna status and be listed on the Indian Stock Exchange with minimum public shareholding as per SEBI regulations.
CPSEs must have an average annual turnover of more than Rs 25,000 crore and an average annual net worth of more than Rs 15,000 crore in the last 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 have significant global presence or international operations, according to the official statement.
It should be noted that Maharatna companies have the freedom to undertake mergers, acquisitions and strategic investments both domestically and internationally. The charter aims to enable these companies to expand their operations and become global giants.
The Government of India classifies Central Public Sector Enterprises (CPSEs) into three categories – Maharatna, Navratna and Miniratna.