Union Finance Minister Nirmala Sitharaman has given her approved on this as the proposal for HAL's upgradation was recommended by two high-level committees: the Inter-Ministerial Committee (IMC), headed by the Finance Secretary, and the Apex Committee, chaired by the Cabinet Secretary.

HAL recorded an annual turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore for the financial year 2023-24. The Maharatna status will enhance its operational autonomy and financial powers. Oil India was the most recent company to receive "Maharatna" status from the government, which was granted in August of last year. BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC and PFC are other Maharatna PSUs.

To qualify for Maharatna status, a company needs an average turnover exceeding Rs 25,000 crore, an average annual net worth of more than Rs 15,000 crore, and an average annual net profit of over Rs 5,000 crore over the past three years. Maharatna status grants PSUs greater autonomy, allowing them to incur capital expenditure on new purchases or replacements without any monetary limit. Additionally, these companies are required to operate independently, without relying on budgetary support or government guarantees.

For comparison, Navratna status also offers enhanced financial and operational freedom, enabling companies to invest up to Rs1,000 crore or 15 per cent of their net worth in a single project without needing prior government approval.