SOURCE: ENS
Hindustan Aeronautics Limited (HAL) is aiming to boost its research and development efforts to increase indigenisation. Chairman-Managing Director R Madhavan, in the company’s annual report 2019-20, said HAL has incurred a total expenditure of Rs 1,232 crore towards the progress of R&D for the year 2019-20, which is six per cent of the turnover, and that a further amount of Rs 254 crore has been transferred to R&D reserve.
The disruption in the supply chain, due to the pandemic, is likely to impact production at HAL, but the public sector undertaking is confident of overcoming the challenge. “Since the pandemic broke out, suppliers are stressed due to cash flow and liquidity problems.
Possible production hold-ups in suppliers’ facilities and restrictions on the movement of goods can lead to disruption of established supply chains, and hence, there could likely be a disruption of production in the short term,” Madhavan said, adding that the company is confident of tiding over such aberrations.
He said defence projects, policies and funding from the Centre play a crucial role in the growth of aerospace and defence industries. “Downsizing of the defence budget and risk of economic recession could lead to difficulty in the availability of working capital,” he added. Centre’s policies, including Atmanirbhar Bharat Abhiyan that gives significant impetus to self-reliance and local production, is expected to favourably impact the operations of the company, Madhavan said.
