Context: Recently, the Government approved the upgradation of Hindustan Aeronautics Limited (HAL) to the Maharatna category Central Public Sector Enterprises (CPSEs).

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• With this upgrade, HAL becomes the 14th Maharatna CPSE, a status that will further enhance its operational autonomy and financial powers.

               14 Maharatna CPSEs are – BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and HAL. 

• The proposal had earlier been recommended by the Inter-Ministerial Committee headed by the Finance Secretary and the Apex Committee headed by the Cabinet Secretary.

About Hindustan Aeronautics Limited (HAL)

• Hindustan Aeronautics Limited (HAL) is a leading aerospace and defence company under the Department of Defence Production (DoDP), Ministry of Defence. It is headquartered in Bengaluru.
• It plays a critical role in the design, development, manufacture, and maintenance of aircraft, helicopters, engines, and related systems for both military and civil use. 
• HAL is known for producing key military aircraft such as the Tejas Light Combat Aircraft (LCA), Dhruv Advanced Light Helicopter (ALH), and Sukhoi Su-30MKI fighters under license.

Historical Background: 

• It was incorporated as Hindustan Aircraft Limited in December 1940 at Bangalore by Shri Walchand Hirachand, in association with the then Government of Mysore, with the aim of manufacturing aircraft in India. 
• In March 1941, the Government of India became one of the shareholders in the Company and subsequently took over its management in 1942. 
• In January 1951, Hindustan Aircraft Limited was placed under the administrative control of the Ministry of Defence, Government of India.
• Meanwhile, in August 1963, Aeronautics India Limited (AIL) was incorporated as a Company wholly owned by the Government of India, to undertake manufacture of   MiG-21 aircraft under licence.
• On October 1, 1964, Hindustan Aircraft Limited and Aeronautics India Limited were merged by an Amalgamation Order from the Government of India, forming Hindustan Aeronautics Limited (HAL). 

Classification of Central Public Sector Enterprises (CPSEs) 

• The government classifies Public Sector Undertakings (PSUs) into three groups i.e. Maharatna, Navratna, and Miniratna.
• The main aim of assigning the "ratna" statuses to various CPSEs was to give operational freedom and decision-making power to the state-run entities.