On October 12, Hindustan Aeronautics Limited (HAL) was awarded Maharatna status, making it the 14th Central Public Sector Enterprise (CPSE) in India to achieve this prestigious classification. This decision was approved by Finance Minister Nirmala Sitharaman after recommendations from the Inter-Ministerial Committee and the Apex Committee. The Maharatna status grants HAL greater financial and operational autonomy, enabling it to invest in domestic and foreign projects without the need for government approval.
Enhanced Powers with Maharatna Status
HAL’s new Maharatna status provides the company with several benefits:
- Increased Investment Capabilities: HAL can now invest up to 15% of its net worth in projects, and up to ₹5,000 crore in international ventures without seeking government clearance.
- Operational Autonomy: The company gains the freedom to make independent decisions regarding mergers, acquisitions, and strategic investments, enhancing its ability to compete on a global scale.
- Broader Economic Role: This upgrade allows HAL to contribute more significantly to India’s defense sector and overall economic growth.
Financial Criteria for Maharatna Status
To qualify for Maharatna status, companies must meet the following criteria:
- Average Annual Turnover: Exceeding ₹25,000 crore
- Average Annual Net Worth: More than ₹15,000 crore
- Average Annual Net Profit: Over ₹5,000 crore over the last three years HAL fulfilled these criteria, reflecting its robust financial health and consistent performance.
HAL’s Recent Financial Performance
In the first quarter of FY25, HAL reported a 76.5% increase in net profit, reaching ₹1,437.2 crore compared to ₹814.2 crore last year. The company also saw an 11% rise in revenue, demonstrating its strong market position and growth potential.
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 Awarded Maharatna Status -Summary
- HAL was upgraded to Maharatna status on October 12, 2024, enhancing its operational autonomy.
- Finance Minister Nirmala Sitharaman approved the upgrade after recommendations from high-level committees.
- HAL is now the 14th Maharatna CPSE in India, joining companies like BHEL, ONGC, and IOCL.
- The new status allows HAL to invest up to 15% of its net worth and ₹5,000 crore in foreign ventures without government approval.
- HAL’s recent financial performance highlights its robust growth, with a 76.5% increase in net profit in FY25’s first quarter.
List of Maharatna, Navratna and Miniratna CPSEs
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Maharatna status is a classification given to CPSEs that grants them greater operational and financial autonomy, including the ability to make large investments without needing government approval.
HAL was granted Maharatna status due to its strong financial performance, meeting criteria such as high average turnover, net worth, and profit over the past three years.
The Maharatna status allows HAL to invest independently in domestic and foreign projects, make strategic decisions, and engage in mergers and acquisitions, enhancing its global competitiveness.
As of 2024, there are 14 Maharatna companies in India, including HAL, BHEL, ONGC, and IOCL.
Companies must have an average turnover of over ₹25,000 crore, a net worth of more than ₹15,000 crore, and a net profit exceeding ₹5,000 crore over the last three years.
HAL’s 76.5% increase in net profit and 11% revenue growth in FY25’s first quarter demonstrate its strong market position and readiness to take on larger projects.
Yes, HAL can now invest up to ₹5,000 crore in foreign ventures without requiring government approval, giving it more flexibility for international expansion.