New Delhi, Jan. 10 -- Hindustan Aeronautics Limited (HAL) for recent fiscal borrowings has forced the Ministry of Defence (MoD) to make way for a two-pronged plan. First, Ministry of Finance has been approached by MoD for more funds and second, the HAL has been asked to set its house in order, work with fiscal prudence and manage its resources well.
The HAL has payments pending amounting to Rs 17,000 crore from the Indian Air Force, for which the Ministry of Finance has agreed to provide additional funds, sources said.
Thursday morning, HAL's top management had a meeting with Defence Minister Nirmala Sitharaman, the Chiefs of the three services and senior officials of the MoD.
The HAL, owned by the MoD, had to borrow money, pending fresh...