Hindustan Aeronautics Limited (HAL), the country's leading defense sector company, has received a major upgrade from the government. The government has given the company Maharatna status. With this, HAL has become the 14th company in the country to be included in this special group. Maharatna companies get some special rights in taking decisions related to work, which increases the speed of their decision making and the company grows faster. This information about HAL came on Saturday. The effect of this decision can be seen on the stock in the next session. The stock closed with a decline of about one percent in Friday's trading.

What is the information

The Department of Public Enterprises informed through X that the Finance Minister has approved the upgrade of Hindustan Aeronautics Limited as the 14th Maharatna CPSE. This proposal has already got the approval of the committee formed between the ministries. HAL is a Department of Defense Production CPSE whose annual turnover on the basis of 2023-24 is Rs 28162 crore and profit is Rs 7595 crore. The company is an important defense company of the country and is associated with fighter planes, civil aviation, space sector. Apart from HAL, BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, Steel Authority, Oil India, REC and PFC have got Maharatna status. What is Maharatna The government has complete control over the decisions of government companies and the board of the company has to take approval from the government for every step. However, this creates the possibility of slowing down the pace of decision making. To deal with this, the government gives special status to companies whose performance improves. With each status, companies get some special rights related to investment etc. These categories are called 'Ratna' and are placed in Miniratna, Navratna and Maharatna on the basis of performance. With further improvement in performance, companies are upgraded to higher status.