HAL awarded Maharatna status; Big action expected on Monday!

Significant developments are emerging regarding HAL, which has been experiencing a decline in stock value recently. The government has made a significant upgrade concerning Hindustan Aeronautics ltd.

The Department of Public Enterprises has announced that the Ministry of Finance has granted the company 'Maharatna' status. With this upgrade, HAL becomes the 14th company in the country to join this elite group. This proposal has already received approval from the inter-ministerial committee.

HAL is a Central Public Sector Enterprise (CPSE) under the Department of Defense Production, with an annual turnover of Rs 28,162 crore and a profit of Rs 7,595 crore for the financial year 2023-24. The company is a crucial player in India’s defense sector. According to stock market experts, this news could positively impact the stock on Monday.

Benefits of Maharatna Status

What does receiving 'Maharatna' status mean for the company? Government control is significant over public sector decisions, requiring company boards to seek government approval for every step. This often slows down project progress. To mitigate such challenges, the government grants special status to companies that demonstrate outstanding performance. With each tier, companies receive specific rights related to investment and other areas. These categories are termed 'Ratnas,' and companies are classified as Miniratna, Navratna, or Maharatna based on their performance.

Which Companies Hold Maharatna Status?

In addition to HAL, other companies that have received Maharatna status include BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, Steel Authority of India Limited, Oil India, and PFC.