In decades, defence PSU Hindustan Aeronautics Limited (HAL) has never been so precarious financially. Last week, HAL CMD R Madhavan told TOI that HAL’s cash in hand was in the negative. It had to borrow close to Rs 1,000 crore as an overdraft (OD).
By March 31, it will be minus of Rs 6,000 crore, an unsustainable situation. HAL could borrow for day-to-day work, but not for project purchases, he said. The main reason behind HAL’s financial plight is a huge amount due from the Indian Air Force (IAF) which is Rs 14,500 crore. As of December 31, total dues of HAL are Rs 15,700 crore. The IAF has paid only Rs 2,000 crore since September 2017.
Madhavan said dues would touch Rs 20,000 crore by March 31. The Ministry of Defence (MoD) had approved a budget of Rs 13,700 crore for 2017-18, and revised budget for 2018-19 was Rs 33,715 crore, including the pending amount from 2017-18. Read More