The state-owned entity Hindustan Aeronautics Limited (HAL) has officially received Maharatna status from the Department of Public Enterprises. The department took to X and announced the same on October 12th, 2024. Union Finance Minister, Ms. Nirmala Sitharaman approved this upgrade following recommendations from two high-level committees: the Inter-Ministerial Committee (IMC), led by the Finance Secretary, Mr. Tuhin Kanta Pandey, and the Apex Committee, chaired by the Cabinet Secretary, Mr. T V Somanathan.
For the financial year 2023-24, HAL reported an annual turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore. The Maharatna status will provide the company with increased operational autonomy and financial authority. The most recent recipient of Maharatna status prior to HAL was Oil India, awarded in August of the previous year. Other companies with this designation include BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, REC, and PFC.
To qualify for Maharatna status, a company must maintain an average turnover exceeding Rs 25,000 crore, an average annual net worth of over Rs 15,000 crore, and an average annual net profit of more than Rs 5,000 crore over the last three years. This status allows public sector undertakings (PSUs) greater independence, enabling them to make capital expenditures on new purchases or replacements without financial limits. Furthermore, these companies must operate autonomously, without depending on budgetary support or government guarantees.
In contrast, Navratna status provides enhanced financial and operational flexibility, permitting companies to invest up to Rs 1,000 crore or 15% of their net worth in a single project without prior government approval.
