Hindustan Aeronautics gets the status of ‘Maharatna’

New Delhi| The Central Government has given Maharatna status to Hindustan Aeronautics Limited (HAL). With this, it has become the 14th Central Public Sector Enterprise (CPSE) to achieve this milestone. This will give the company more freedom to take its own decisions. The Public Enterprises Department gave this information on social media on Saturday.

Maharatna status will further enhance the operational independence and financial powers of HAL, which will have the potential for many good development projects in the future. Now HAL can invest up to 15 per cent of its assets in projects and invest up to Rs 5,000 crore in foreign enterprises without government approval.

The Finance Minister has approved the upgrade of HAL as the 14th Maharatna CPSE, the Department of Public Enterprises said in a post on X. 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.

Apart from HAL, 13 Maharatna NTPC Limited, Oil and Natural Gas Corporation (ONGC), Steel Authority of India Limited (SAIL), Bharat Heavy Electricals Limited (BHEL), Oil Corporation of India Limited (IOCL), Hindustan Petroleum, Coal India Limited, GAIL India Limited, Bharat Petroleum Corporation Limited (BPCL), Power Grid Corporation, Power Financial Corporation, Rural Electrification Corporation Limited and Oil India Limited are included.

HAL is a government company, which is involved in defense production. Its annual turnover is Rs 28,162 crore. Its net profit last year stood at Rs 7,595 crore. HAL manufactures engines, communication equipment, navigation equipment, display systems, hydraulic systems, electric equipment etc. required for aircraft and helicopters. In September this year, the Ministry of Defense had signed a contract with HAL for 240 AL-31FP Arrow engines for Sukhoi-30 MKI aircraft with a cost of Rs 26 thousand crores.

These arrow engines will be built in Koraput division of HAL. The engines will help maintain the capability of the Sukhoi-30 aircraft of the IAF. HAL reported that 30 Arrow engines would be built each year, and all 240 engines would be built over the next eight years.