Why in the News?

The Centre has upgraded the status of PSU Hindustan Aeronautics Ltd (HAL) as Maharatna Company (from earlier Navratna Status).

About Hindustan Aeronautics Limited (HAL): Key Facts

HAL was founded in 1940 in Bangalore as Hindustan Aircraft Limited, merging with Aeronautics India Limited in 1964 to become HAL.
It is a state-owned company under the Ministry of Defence.
Headquarters are in Bengaluru, Karnataka.
Operates 20 production and R&D centers across India, including Bangalore, Nashik, Koraput, and Lucknow.
Focuses on design, development, manufacture, and maintenance of aircraft, helicopters, engines, avionics, and aerospace equipment.
Produces fighter aircraft like Tejas LCA, Sukhoi Su-30MKI, Jaguar, and Hawk.
- Manufactures helicopters including Dhruv ALH, Rudra, Cheetah, Chetak, and LCH.
Collaborates with Boeing, Airbus, Rosoboronexport, and Safran on aircraft production and tech transfer.
Listed on BSE and NSE in 2018, allowing public investment.
Expanded exports, supplying aircraft and helicopter parts to countries like Vietnam, Mauritius, and Ecuador.
- Recent projects include AMCA, IMRH, and Tejas Mk2, boosting India’s indigenous defense capabilities.

	Details
What is it?	• Recognition granted to select Public Sector Undertakings (PSUs) in India. • Provides greater financial and operational autonomy compared to Navratna and Miniratna PSUs.
Eligibility	• Annual Turnover: Over ₹25,000 crore in the last three years. • Net Worth: More than ₹15,000 crore over the last three years. • Net Profit: Minimum of ₹5,000 crore for three consecutive years. • Must have significant global operations or international presence.
Autonomy	• Can invest up to ₹5,000 crore or 15% of their net worth in a single project without government approval. • Authorized to make equity investments for strategic resources or collaborations in India and abroad.
Purpose	• Aims to foster more flexibility in operations and encourage expansion, especially in international markets. • Helps companies to become global players.
Examples	• Indian Oil Corporation (IOC) • Bharat Petroleum Corporation Limited (BPCL) • Steel Authority of India Limited (SAIL) • Oil and Natural Gas Corporation (ONGC)
Significance	• Enhances the ability of PSUs to compete globally. • Allows quicker decision-making and reduces bureaucratic hurdles. • Promotes growth and competitiveness in the international arena.

HAL can now invest up to ₹5,000 crore (from earlier ₹1000 cr) or 15% of its net worth (whichever is applicable) in a single project without needing government approval.
As a Maharatna company, HAL has the freedom to engage in mergers, acquisitions, and strategic investments, both domestically and internationally.

[2011] Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.

2. The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2