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Hindustan Aeronautics Limited (HAL) will now be the 14th ‘Maharatna’ company among Central Public Sector Enterprises (CPSE), the Finance Ministry announced on Saturday. This status will give more autonomy to the company in terms of financial and strategic matters.
HAL is a Department of Defence Production (DoDP) CPSE with an annual turnover of ₹28162 crore and a net profit of ₹7595 crore for FY2023-24. Shares of HAL closed at ₹4446.85 on Friday with a loss of 0.76 per cent over previous closing price.
“The Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th Maharatna CPSE,” the Public Enterprises Department said in a social media post on X. Further, it said that the proposal had earlier been recommended by both the Inter-Ministerial Committee (IMC) headed by the Finance Secretary and the Apex Committee headed by the Cabinet Secretary.
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Government has laid down six key parameters for a CPSE to be considered for the granting of Maharatna status. These include the CPSE already having a ‘Navratna’ status. It needs to be listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations. It should have an average annual turnover of more than ₹20,000 crore, an average annual net worth of more than ₹10,000 crore and an average annual net profit of more than ₹2,500 crore during the last three years. The CPSE should have significant global presence or international operations.
Talking about its future outlook, the company’s annual report (2023-24) said that in the Defence segment, demand for products from Indian Defence Services is expected to grow, owing to the Government of India’s vision for achieving Atmanirbhar Bharat and the current geopolitical scenario. On the commercial side, air travel is likely to continue its upward trajectory. The surge in air travel will lead to an increased demand for new aircraft and MRO services.
“India’s annual Defence production is expected to touch ₹3 lakh crore by 2028-29, along with arms exports of ₹50,000 Crore,” the report said, quoting Defence Minister Rajnath Singh. This indicates that the Indian Defence Sector, which was so far contributing as a strategic sector, is gradually developing as an economic sector with the capability and vision to contribute to the economic growth of the country. Various initiatives of the GoI have given thrust on the indigenisation of Defence equipment, to reduce Defence import as well as dependence on the foreign OEMs, the report added.
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Further, it highlighted that to encourage R&D within the industry, by start-ups, and by academia, the MoD has announced schemes like Innovation for Defence Excellence (iDEX) and Technology Development Fund (TDF). “Over next 5 -10 years such reforms will equally help Defence PSUs and private industry to achieve a self-sustaining Defence industry in the country,” the report said.
The future projects such as LCA MkII, Advance Medium Combat Aircraft (AMCA), Indian Multirole Helicopter (IMRH), Twin Engine Deck Based Fighter (TEDBF) etc. will ensure the technological lead of India and HAL in particular in the years to come. The Company has taken various initiatives to make systems more agile, effective, cost efficient and to be competitive, the report mentioned
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Published on October 12, 2024
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