The state-owned aviation major Hindustan Aeronautics Limited (HAL) still owes more than Rs 800 crore to its contractors, the Union Defence Ministry informed the Parliament on Monday.

Between January and June 2019, the PSU was paid Rs 8,140 crore by various defence services to tide over its financial crisis. “The amount of arrears of payment to other contractors outstanding with HAL is Rs 868.14 crore,” Defence Minister Rajnath Singh said in a written reply to the Rajya Sabha.

Dues of vendors, including HAL, were paid depending on the availability of funds, prioritisation of schemes and consideration of the advances or payments that are due to the vendors including HAL, the minister clarified.

The Bangalore-based company has firm orders to manufacture Su-30MKI fighter, Tejas Light Combat Aircraft, Dornier-228, Dhruv Advanced Lightweight Helicopters, Chetak and other helicopters. “As and when required, HAL borrows from banks to meet its working capital requirements,” Singh said in his statement.

Earlier this year, HAL hit the headlines because of a severe financial crisis during which the company had to take loans from the banks to pay salary to its employees.

The company’s cash reserves at the end of the fourth quarter of 2018-19 stood at a Rs 140.49 crore, a dip of 98% from Rs 6,524 crore a year ago.

The trade receivables, on the back of non-payment of the dues by the armed force, had jumped by 80% to Rs 13,938 crore at the end of March 2019, from Rs 7,742 crore a year ago.