Functioning of Hindustan Aeronautics Limited
(Source: Indian Ministry of Defence; issued June 24, 2019)
The present capacity available in HAL is adequate to fulfil the existing orders/projects in hand.

Currently, HAL has firm orders to manufacture platforms like Su-30 MKI, LCA, DO-228, ALH, Chetak and Cheetal helicopters.

As and when required, HAL borrows from banks to meet its working capital requirements.

An amount of Rs.8140 crore has been paid to HAL from January, 2019 to June, 2019 from defence services. Dues of vendors including HAL are paid depending on the availability of funds, prioritization of schemes and advances/payments that fall due to the vendors including HAL.

The amount of arrears of payment to other contractors outstanding with HAL is Rs. 868.14 crore.

The Company has initiated various productivity improvement measures through:
-- Developing robust supply chain eco-system by partnering with the emerging Indian Defence Manufacturing Private Sector including Micro, Small & Medium Enterprises (MSMEs) to enable HAL to focus on its core activities.

-- Introduction of Digital Technology, Software Tools in the areas of Product Life-Cycle Management (PLM) and Product Data Management (PDM) to convert the Design Data to the Production Data, Design Simulator and Analysis to optimise development cost and time. Enhancing capability and improving the processes through introduction of new manufacturing technologies.

-- The company implemented an integrated software solution i.e., Enterprise Resource Planning (ERP) to encompass all areas of Production, Planning, Finance, Materials, Marketing and Human Resources Development (HRD). This facilitates implementation of uniform procedures and practices as well as providing on-line information for decision making for Management.

-- Strengthening the network connectivity to improve the communication and collaboration services across the Company.

-- With an objective to enhance the productivity, quality and customer satisfaction, through Skill upgradation, Skill Development Policy was notified in July 2016. Skill Mapping of the employees has been conducted for necessary training based on Skill Gap Analysis. The Company has also implemented globally acclaimed training methodology, “Training Within Industry (TWI)”, to improve efficiency and productivity. It has resulted in upgrading the skills of the employees, reduction of rejection and rework, reduction of cycle time.

-- Promoting Quality Circles, Suggestion Scheme, implementation of Performance Based Incentives, etc.

The Company has regularly monitored the Performance of Production and related activities to identify areas for improvement, corrective actions as necessary for implementation as a continuous measure for companywide efficiency and productivity improvement.

This information was given by RakshaMantri Shri Rajnath Singh in a written reply to Dr.T. Subbarami Reddyin Rajya Sabha today.


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