Bengaluru: Defense PSU Hindustan Aeronautics Limited, which is reeling under financial crisis has reached the desperate position of borrowing money to pay the employees’ salaries.

As per a TOI report, the company has money enough to run the show only till April.

HAL CMD R Madhavan is quoted by TOI saying, “Our cash in hand is in negative and we had to borrow at least Rs 1000 crores. By March we will have a negative of Rs 6000 cr, which will be a pathetic situation. We can take loans for daily operations, but not for any purchase related to projects.”

It is said that the HAL has reached this situation mainly due to the non-payment of outstanding amount by its biggest customer- the Indian Air Force (IAF). Sources say that the IAF has not made any payment to the company since September 2017, which then stood at Rs 10,000 crores. It shot up to Rs 15,700 cr in December 2018 and is all set to reach Rs 20,000 cr by March 2019.

The IAF has paid only Rs 2,000 crore since September 2017. Its present dues stand at Rs 14,500 crore.