Last instance of HAL borrowing money to pay salaries?
A navratna PSU having to borrow money to pay salraies is not a problem, then what is. This efffin RM needs to go.
LCA Tejas Mk1 & Mk1A - News and discussions
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A navratna PSU having to borrow money to pay salraies is not a problem, then what is. This efffin RM needs to go.
This overdraft thing is unique, but DPSU not getting paid for a long time is the norm.
I'm pretty sure - this problem will not be forgotten for many years to come.
AND
I'M VERY SURE , which ever Govt or RM at the Centre - Any delays in any project - HAL will use this problem as an excuse - for these delays!
So when DPSU's don't get paid, how do they operate? Who pays vendors, contractors, salaries, materials? Have they all been lying on their returns? BDL, BHEL, MDL, BEL? all liars? How does a balance sheet, balance?
Excuse?
There is no money, not to pay for projects, not for vendors, not for materials, not for subsystems, not for engines, not for contractors.
This entire saga for new lines for LCA, who is going to pay the contractors for building the hangars, who will pay suppliers for machine tools, fixtures, overhead cranes?
Using Excuse as a noun to Justify for the Delays from HAL -
So the next time - we see any delay from HAL - when it comes to finger pointing - Top of the list would be lack of funds. Whether this is true or not - one will have to see at that time - All we know something else like for eg - manufacturing the actual cause
Case : HTT40 - we have read reports abt the spin test in the beginning of 2018 (March) and they just got completed at the end of 2018. Is the testing period that long? What is the reason?
LCA : L for light.
MRCA : M for medium.
No way a LCA can fullfil a MRCA need. Tejas has too short legs.
And HAL records on quality and on support is too weak to satisfy a foreign air force.
F16, Gripen, even T50 (?) are more likely to win.
All vendors have been paid up for this year. Next year is the problem, and IAF will be transferring 14kCr for the payments that will go next year.
Almost 16 are ready. And 20-24 are in the assembly line. 32 jets will be delivered by mid 2020.
It will be better if we supply 30-35 aircraft to Malaysia. This will keep the line busy and help IAF reduce the number of MK1A and allow time for MK2 to come online.
Dip into surplus, will seek more funds: Govt to HAL
HAL’s finances have come under scrutiny after the defence minister listed orders that had been given to the public sector company and which are in the works and will soon be given to the aircraft manufacturer.
The defence ministry has sought additional funds from the finance ministry to meet its expenses in the current financial year and also pay, at least in part, Hindustan Aeronautics Limited (HAL) the dues that the Indian Air Force (IAF) owes it, government officials said on condition of anonymity.
In addition, the defence ministry has advised state-owned HAL to use its reserves, about Rs 12,000 crore, officials in the ministry said on condition of anonymity.
On Wednesday, defence minister Nirmala Sitharaman met HAL chairman and managing director R Madhavan in New Delhi.
“A company builds reserves for these very reasons,” a senior government official said.
In the meeting on Wednesday, the government and HAL also discussed delivery schedules of aircraft and helicopters that HAL produces for the Indian Army, the Navy and the Air Force.
HAL’s finances have come under scrutiny after the defence minister listed orders that had been given to the public sector company and which are in the works and will soon be given to the aircraft manufacturer. After it came to light that the company recently borrowed Rs 1,000 crore to pay salaries, questions have been asked about its financial health.
The company itself has been in the news because the Congress has made it one of the centrepieces in its attack on the Rafale jet fighter deal.
The party has alleged that the National Democratic Alliance replaced an old deal (negotiated by the Congress-led United Progressive Alliance) to buy 126 Rafale fighters, 118 of which were to be made by HAL, with an outright purchase of 36 fighters so as to benefit Anil Ambani’s Reliance Defence, which has entered into an offset deal with Rafale maker Dassault Aviation.
It has claimed that the new deal was struck at a much higher price than the old one. The government has defended the deal, said it had actually paid less for the aircraft, and also clarified that it has nothing to do with offset deals between manufacturers and their partners in India. The Supreme Court recently ruled, in response to a petition seeking a probe into the deal, that it is convinced due process was followed in the deal and that it will not go into issues such as pricing.
HAL, which was expected to supply 16 Tejas fighters to IAF by March this year, has so far delivered 11 and expects to meet its target.
The meeting also discussed payments from the debtors. IAF, for instance, owes Rs 15,000 crore to HAL. According to a senior HAL executive who did not wish to be named, IAF’s outstanding sum is expected to soar to Rs 20,000 crore by the end of this financial year (March 31, 2019).
Madhavan did not respond to queries seeking comment.
The company paid Rs 9,406 crore in three years — 2015-16, 2016-17, and 2017-18 — to the government of India as dividends, to buy back its shares and as tax on buyback and dividend, according to the financial statements of the company and documents accessed by Hindustan Times. Over a five-year period, including 2013-14 and 2014-15, the number increased to Rs 11,024 crore.
In addition, HAL paid dividends of Rs 755 crore, Rs 962 crore and Rs 1,294 crore (the amount includes dividend tax) in the three years ending 2017-18.
First Published: Jan 10, 2019 07:27:22
HAL’s finances have come under scrutiny after the defence minister listed orders that had been given to the public sector company and which are in the works and will soon be given to the aircraft manufacturer.
The defence ministry has sought additional funds from the finance ministry to meet its expenses in the current financial year and also pay, at least in part, Hindustan Aeronautics Limited (HAL) the dues that the Indian Air Force (IAF) owes it, government officials said on condition of anonymity.
In addition, the defence ministry has advised state-owned HAL to use its reserves, about Rs 12,000 crore, officials in the ministry said on condition of anonymity.
On Wednesday, defence minister Nirmala Sitharaman met HAL chairman and managing director R Madhavan in New Delhi.
“A company builds reserves for these very reasons,” a senior government official said.
In the meeting on Wednesday, the government and HAL also discussed delivery schedules of aircraft and helicopters that HAL produces for the Indian Army, the Navy and the Air Force.
HAL’s finances have come under scrutiny after the defence minister listed orders that had been given to the public sector company and which are in the works and will soon be given to the aircraft manufacturer. After it came to light that the company recently borrowed Rs 1,000 crore to pay salaries, questions have been asked about its financial health.
The company itself has been in the news because the Congress has made it one of the centrepieces in its attack on the Rafale jet fighter deal.
The party has alleged that the National Democratic Alliance replaced an old deal (negotiated by the Congress-led United Progressive Alliance) to buy 126 Rafale fighters, 118 of which were to be made by HAL, with an outright purchase of 36 fighters so as to benefit Anil Ambani’s Reliance Defence, which has entered into an offset deal with Rafale maker Dassault Aviation.
It has claimed that the new deal was struck at a much higher price than the old one. The government has defended the deal, said it had actually paid less for the aircraft, and also clarified that it has nothing to do with offset deals between manufacturers and their partners in India. The Supreme Court recently ruled, in response to a petition seeking a probe into the deal, that it is convinced due process was followed in the deal and that it will not go into issues such as pricing.
HAL, which was expected to supply 16 Tejas fighters to IAF by March this year, has so far delivered 11 and expects to meet its target.
The meeting also discussed payments from the debtors. IAF, for instance, owes Rs 15,000 crore to HAL. According to a senior HAL executive who did not wish to be named, IAF’s outstanding sum is expected to soar to Rs 20,000 crore by the end of this financial year (March 31, 2019).
Madhavan did not respond to queries seeking comment.
The company paid Rs 9,406 crore in three years — 2015-16, 2016-17, and 2017-18 — to the government of India as dividends, to buy back its shares and as tax on buyback and dividend, according to the financial statements of the company and documents accessed by Hindustan Times. Over a five-year period, including 2013-14 and 2014-15, the number increased to Rs 11,024 crore.
In addition, HAL paid dividends of Rs 755 crore, Rs 962 crore and Rs 1,294 crore (the amount includes dividend tax) in the three years ending 2017-18.
First Published: Jan 10, 2019 07:27:22
Malayasia being a muslim country will let Pakistan inspect and test ride it.
IAF cannot reduce the Mk1A numbers. The contract is already being worked on. But HAL can deliver the 30 jets Malaysia needs alongside the 83 jets for the IAF.
Malaysia is going to take time to make their decision anyway.
Well steps to improve efficiency is never bad. Just that in my opinion the DPSUs shouldn't be primarily about jobs or hiring more people, but delivering the things to Armed Forces. It's about national security. Workers should come secondary here.Hey, I think I have to rethink my position on HAL now.
And some of the OFBs and HAL do need improvements urgently.
PS: I do acknowledge that few OFBs are actually trying to improve, Shipyards also doing not bad and so are others like BEL.
Never count your chickens before they hatch.
Thinking that LCA will outright beat its competitors in Malaysia and Malaysia will order 30 odd aircraft which will inturn keep HAL occupied....
Its like MiG counting on Mig35 to outright defeat 5 other contenders in our own MMRCA program. Wherein the other 5 actually had the aircraft, while Mig35 was just....
Thinking that LCA will outright beat its competitors in Malaysia and Malaysia will order 30 odd aircraft which will inturn keep HAL occupied....
Its like MiG counting on Mig35 to outright defeat 5 other contenders in our own MMRCA program. Wherein the other 5 actually had the aircraft, while Mig35 was just....
Plus IAF isn't already going to get the trainers before 2021. So its best that the few twin seaters we have should be dedicated for testing and trainings only.
It will take them one or two years to decide on a jet, then a year for negotiations and 3 years for first delivery. They are not expected to sign up until after 2023. Which means any LCAs for Malaysia won't be going to their shores until 2025 or later. This time lag will allow HAL to even replace Mk1A's current avionics with all Indian avionics being developed for Mk2.
We must integrate Uttam AESA and Astra missile to Tejas to make it more export worthy. If possible then Kavery too.