Hindustan Aeronautics Limited Becomes 14th Maharatna Company in India
The central government has elevated Hindustan Aeronautics Limited (HAL) to the status of the 14th Maharatna Central Public Sector Enterprise (CPSE). This upgrade, announced by the Department of Public Enterprises, grants HAL greater operational autonomy and financial powers. HAL can now invest up to 15% of its net worth in projects and up to Rs 5,000 crore in foreign ventures without needing government approval.
The Finance Minister approved this upgrade following recommendations from the Inter-Ministerial Committee and the Apex Committee. HAL joins 13 other Maharatna companies, including NTPC, ONGC, and SAIL, among others.
HAL, a Department of Defence Production CPSE, reported an annual turnover of Rs. 28,162 crore and a net profit of Rs. 7,595 crore for the fiscal year 2023-24. The company manufactures essential equipment for aircraft and helicopters.
Recently, HAL signed a contract with the Ministry of Defence to produce 240 AL-31FP Aero Engines for Su-30MKI aircraft, valued at over Rs 26,000 crore. These engines will be produced by HAL’s Koraput Division to support the Indian Air Force’s operational capabilities.
To qualify for Maharatna status, CPSEs must meet specific financial criteria, including a significant global presence. Maharatna companies have the freedom to engage in mergers, acquisitions, and strategic investments, both domestically and internationally, to expand their operations.
Doubts Revealed
Hindustan Aeronautics Limited -: Hindustan Aeronautics Limited, or HAL, is a company in India that makes airplanes and other flying machines, mainly for the Indian military.
Maharatna -: Maharatna is a special status given to some big government-owned companies in India. It means they are very important and can make big decisions on their own, like investing in new projects, without asking the government every time.
Central Public Sector Enterprise (CPSE) -: Central Public Sector Enterprises are companies owned by the Indian government. They work in different areas like energy, transportation, and defense to help the country grow.
Finance Minister -: The Finance Minister is a person in the Indian government who is in charge of the country’s money matters, like making budgets and deciding how to spend money.
Aero engines -: Aero engines are engines used in airplanes to help them fly. They are very powerful and are made by special companies like HAL.
