Hindustan Aeronautics Limited (HAL), a state-run company, is expected to be upgraded to the prestigious Maharatna category by the end of this year. This upgrade would elevate HAL from its current Navratna status, providing the company with greater financial and operational autonomy.
Once upgraded, HAL’s board will be able to make project investments up to ₹5,000 crore without needing government approval. Currently, as a Navratna company, HAL can only make independent project investments up to ₹1,000 crore.
India currently has 13 Maharatna and 25 Navratna Central Public Sector Enterprises (CPSEs). The most recent upgrade to the Maharatna category was Oil India in August 2023.
HAL has been in the spotlight recently after securing a massive ₹1,26,000 crore contract with the Ministry of Defence for the production of 240 AL-31FP Aero Engines, which power the Su-30MKI aircraft.
Additionally, HAL has attracted significant attention from brokerages after the government approved defence procurements worth ₹21.44 lakh crore. These large-scale procurements are expected to boost the Indian Armed Forces and address concerns about the lack of orders in the defence sector.
