Context:
Recently, the Government approved the upgradation of Hindustan Aeronautics Limited (HAL) to the Maharatna category Central Public Sector Enterprises (CPSEs).
More on the News
- With this upgrade, HAL becomes the 14th Maharatna CPSE, a status that will further enhance its operational autonomy and financial powers.
- 14 Maharatna CPSEs are – BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and HAL.
- The proposal had earlier been recommended by the Inter-Ministerial Committee headed by the Finance Secretary and the Apex Committee headed by the Cabinet Secretary.
About Hindustan Aeronautics Limited (HAL)
- Hindustan Aeronautics Limited (HAL) is a leading aerospace and defence company under the Department of Defence Production (DoDP), Ministry of Defence. It is headquartered in Bengaluru.
- It plays a critical role in the design, development, manufacture, and maintenance of aircraft, helicopters, engines, and related systems for both military and civil use.
- HAL is known for producing key military aircraft such as the Tejas Light Combat Aircraft (LCA), Dhruv Advanced Light Helicopter (ALH), and Sukhoi Su-30MKI fighters under license.
Historical Background:
- It was incorporated as Hindustan Aircraft Limited in December 1940 at Bangalore by Shri Walchand Hirachand, in association with the then Government of Mysore, with the aim of manufacturing aircraft in India.
- In March 1941, the Government of India became one of the shareholders in the Company and subsequently took over its management in 1942.
- In January 1951, Hindustan Aircraft Limited was placed under the administrative control of the Ministry of Defence, Government of India.
- Meanwhile, in August 1963, Aeronautics India Limited (AIL) was incorporated as a Company wholly owned by the Government of India, to undertake manufacture of MiG-21 aircraft under licence.
- On October 1, 1964, Hindustan Aircraft Limited and Aeronautics India Limited were merged by an Amalgamation Order from the Government of India, forming Hindustan Aeronautics Limited (HAL).
Classification of Central Public Sector Enterprises (CPSEs)
- The government classifies Public Sector Undertakings (PSUs) into three groups i.e. Maharatna, Navratna, and Miniratna.
- The main aim of assigning the “ratna” statuses to various CPSEs was to give operational freedom and decision-making power to the state-run entities.
| Criteria | Maharatna | Navratna | Miniratna |
| Eligibility | · Must already be a Navratna company and listed on the Stock exchange with minimum prescribed public shareholding under SEBI regulations· During the last three years, it should have an average annual turnover of over ₹25,000 crore, a net worth exceeding ₹15,000 crore, and a net profit after tax above ₹5,000 crore· Additionally, the CPSE should have a significant global presence or international operations | · Must already be a Miniratna I, Schedule ‘A’ CPSE and have obtained an ‘excellent’ or ‘very good’ MoU rating in three of the last five years· It should have a composite score of 60 or more in six performance indicators like profitability, productivity, efficiency, etc. | · Miniratna Category-I: The CPSEs which have reported profits in three consecutive years, have a pre-tax profit of ₹30 crore or more in at least one of the three years, and have a positive net worth are eligible to be considered for grant of Miniratna-I status.· Miniratna Category-II: The CPSEs with a profit for the last three successive years and have a positive net worth are eligible to be considered for grant of Miniratna-II status. |
| Financial Autonomy | Can invest up to ₹5,000 crore or 15% of their net worth in a single project without government approval | Can invest up to ₹1,000 crore or 15% of their net worth in a single project without government approval | Category I: Can invest up to ₹500 crore or an amount equal to their net worth, whichever is less Category II: Can invest up to ₹300 crore or 50% of their net worth, whichever is lower |
| Number of CPSEs | 14 | 25 | 64 Miniratna Category-I and 11 Miniratna Category-II |