HAL is 14th Maharatna in the country
Who approves the classification?
The upgradation is approved by the Finance Minister, following recommendations from both the Inter-Ministerial Committee (IMC), led by the Finance Secretary, and the Apex Committee, headed by the Cabinet Secretary.
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What is Maharatna status
Understanding Maharatna Status
The Government introduced the ‘Navratna’ scheme in 1997 to identify and support CPSEs with competitive advantages in their journey to becoming global leaders. Under this scheme, ‘Navratna’ CPSEs were granted powers in capital expenditure, joint ventures, and human resources management. As many of these companies grew significantly larger than their peers, the need arose for a new classification—‘Maharatna’—to recognize those with the potential to become Indian multinational companies (MNCs). This higher status incentivizes other ‘Navratna’ companies, enhances brand value, and allows for the delegation of greater powers to CPSEs, fostering further growth and international competitiveness.
The Maharatna status is granted to CPSEs in India, allowing them greater operational and financial autonomy. To qualify for this status, companies must meet specific criteria, which include:
Navratna Status: The company must have previously been conferred Navratna status.
Stock Market Listing: The company must be listed on the Indian stock exchange, complying with the Securities and Exchange Board of India (SEBI) regulations regarding public shareholding.
Financial Performance:
An average annual turnover of over ₹25,000 crore in the last three years.
An average annual net worth exceeding ₹15,000 crore during the same period.
An average annual net profit after tax greater than ₹5,000 crore over the last three years.
Global Presence: The company should have significant international operations or a global presence.
Implications or benefit of Maharatna Status
Achieving Maharatna status empowers HAL with enhanced financial autonomy, enabling it to make significant investment decisions without requiring prior government approval. This autonomy is expected to facilitate quicker project implementation, drive innovation, and enhance operational efficiency.
Furthermore, this status places HAL among the most influential and financially stable public sector undertakings in India, highlighting its strategic importance not only within the country but also on a global scale.