Dip into surplus, will seek more funds: Govt to HAL

NEW DELHI: 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 ₹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 today, 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 ₹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. NEW DELHI: The subcommittee set up by the Union health ministry in November last year following the payouts for Johnson & Johnson (J&J) faulty implants is caught up in red tape, with some of its members claiming they have not yet been informed that they are a part of the panel.

On November 29, the Drug and Technical Advisory Board (DTAB), a statutory body, had announced the constitution of a 10-member subcommittee to fix compensation for faulty medical devices, especially in cases of death and injury.