The Hindu : Karnataka / Bangalore News : HAL seeks status of a Navratna

Online edition of India's National Newspaper
Tuesday, Sep 26, 2006
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Karnataka

Karnataka - Bangalore

HAL seeks status of a Navratna

Special Correspondent

Company's application is under the consideration of an apex committee

HAL is currently a Mini Ratna Category I company

Navratna status will entitle it to have far greater financial autonomy

Bangalore: Hindustan Aeronautics Limited (HAL) has submitted a proposal to the Centre seeking Navratna status for the company and the application is currently under the consideration of the apex committee headed by the Union Cabinet Secretary.

The Bangalore-based defence PSU is currently a Mini Ratna Category I company and this status entitles it to incur a capital expenditure of up to Rs. 500 crore or 30 per cent of its net worth for taking up new projects or starting new subsidiaries and technology joint ventures besides forging strategic alliances without the prior approval of the Union Government.

However, a Navratna status would entitle it to have far greater financial autonomy and help it join the big league of PSUs such as Indian Oil Corporation and ONGC.

For getting the Navratna status, a PSU will have to attain a minimum score of 60 when various parameters are tabulated as per the guidelines published by the Bureau of Public Enterprises (BPE).

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