BENGALURU: Asserting that its financial condition is very stable and that it is not being `ignored’ when it comes to orders as alleged by the opposition,
HAL has said that it is not interested in the offsets for the Rafale deal and would like to be kept away from the political controversy around it.
Speaking at the Aero India show, HAL’s Chairman and Managing Director R Madhavan said that the profitability of the company has been growing and the perception that it is being rejected in favour of private companies is incorrect.
“We are not ignored. If we were being ignored we would not be getting the orders,” the CMD said in response to a direct question on allegations by Congress President Rahul Gandhi. Madhavan added that the company does not `want to get into the Rafale fight and we will focus on our work”.
He also reiterated that the company is not interested in the offsets contract of the Rafale fighter jet deal – a point of attack by the opposition that has been charging the government with favouring the Reliance Defence group and taking away business from HAL.
Madhavan shared that a proposal for 18 more Sukhoi 30 MKI fighter jets has been mooted in addition to the 272 already on order and that this would give additional work to its production lines.
On the financial condition of the company, the Director Finance C Ananthakrishnan said that financial results have been good and show an increased profitability. Admitting that there were issues with cash flows – the air force has held back payments this year forcing the company to take a short term loan – the official said that the issue is being sorted out and that the company has tweaked cash credit limits.
“The financial condition is not an issue at all and inflow from the customers has also started coming. Our operations have not been hampered,” the senior executive said.