From having had to borrow to even pay salaries in 2018-19, defence PSU HAL’s cash position is back in the black with most dues from the three defence services — the PSU’s mainstay customers — having been cleared.
As on date, HAL has Rs 7,135 crore as cash holding compared to a negative of Rs 5,477 on March 31, 2020 and a negative of Rs 4,051 crore on March 31, 2019. When HAL first borrowed to pay salaries in the last quarter of 2018-19, the PSU had said its cash in hand was in the negative for the first in two to three decades and that it had borrowed Rs 1,000 crore. TOI was the first to report about HAL’s cash problems.
“We had a problem with the cash balance mainly because collections were dipping from September 2017 given that the defence forces had other commitments. This year, we’ve managed to collect almost all our dues. We’ve collected Rs 34,475 crore in 2020-21, while the same was Rs 18,000 crore in 2019-20 and Rs 10,800 crore in 2018-19,”R Madhavan, chairman, HAL told TOI.
Further, HAL, whose order book is now worth around Rs 80,000 crore, is expecting more orders this year, and is confident of the same touching Rs 1-lakh-crore in the next two years.