As a result, in the new year, HAL has proposed cost-cutting measures such as reducing 20% contract workers and curbing non-essential travel. The Defence Minister is slated to meet HAL CMD R. Madhavan and the three Services chiefs on Wednesday. Normally payments used to come from the IAF, its largest and main customer, within one to three months. Last week, HAL CMD R. Mr. Madhavan had told The Hindu, “Our main worry is the liquidity position. About a month back, HAL took an overdraft of ₹962 crore to meet such mundane expenses as staff salaries.

Source: The Hindu January 08, 2019 17:03 UTC