Hindustan Aeronautics Limited (HAL) has climbed the ladder to ‘Maharatna’ status, becoming the 14th Central Public Sector Enterprise (CPSE) to bag this esteemed recognition.

What Happened: The Department of Public Enterprises declared the upgrade on Saturday, following the nod from Finance Minister Nirmala Sitharaman.

HAL, functioning under the Department of Defence Production, posted an annual turnover of ₹28,162 crore and a net profit of ₹7,595 crore for the fiscal year 2023-24. The Maharatna status will boost HAL’s operational autonomy and financial powers.

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The last company to be awarded the Maharatna status was Oil India, in August of the previous year. The Maharatna PSUs now comprise notable entities such as BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and the newly promoted HAL.

To qualify for Maharatna status, a company must meet specific financial requirements, including an average turnover of more than ₹25,000 crore, an average annual net worth exceeding ₹15,000 crore, and an average annual net profit of over ₹5,000 crore over the past three years. This designation PSUs greater autonomy, allowing them to make capital expenditures for new purchases or replacements without any monetary restrictions.

his promotion comes on the heels of HAL’s significant contract with the Defence Ministry for the production of 240 AL-31FP Aero Engines for Su-30MKI aircraft, valued at over ₹26,000 crore. The deal, formalised on September 09, 2024, was greenlighted by the Cabinet Committee and will see the engines, containing over 54% indigenous parts, produced at HAL’s Koraput division.

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