The Indian government has placed Bharat Heavy Electricals Limited (BHEL) and Steel Authority of India Limited (SAIL) on a one-year watchlist due to their failure to meet key financial criteria necessary for retaining their Maharatna status. Both companies did not achieve an average annual profit after tax (PAT) of more than ₹5,000 crore over the past three years, despite meeting other eligibility conditions such as turnover and net worth. If they do not improve their financial performance within the stipulated period, they risk being downgraded to Navratna status, which would significantly limit their financial autonomy. Currently, Maharatna companies can approve investments up to ₹5,000 crore without government approval, while Navratna companies can only approve up to ₹1,000 crore. This downgrade could hinder their ability to undertake large projects or strategic investments. The government is also tightening oversight of public sector enterprises, emphasizing accountability and performance standards. Both companies have been directed to submit plans to enhance profitability and operational performance, with SAIL reporting a turnover exceeding ₹1 lakh crore but struggling with profitability metrics.