Friday, March 14, 2025

HAL Banking On LCA & Prachand Order For Growth

By Vijay Grover

At every Aero India, Hindustan Aeronautics Limited (HAL) plays a key role and all eyes of the Delegates from India and abroad are on this Maharatna PSU which announced big plans to strengthen India’s defense capabilities on the second day of Aero India 2025.

In its most awaited press conference, HAL Chairman D K Sunil announced the readiness to ramp up production of the Light Combat Aircraft (LCA) Tejas and Prachand Helicopter, making India’s skies safer. It may be recalled that the HAL is closely monitoring the progress of the Government of India’s order for 97 Light Combat Aircraft Tejas and the order for 160 Prachand helicopters which have become the mainstay of operations at HAL.

Responding to the story on the references to delay in Tejas production in the special edition of the Indian Aerospace Magazine and other media queries, the Chairman responded,” The GE has stabilized its manufacturing process for the F404 engines. We have already made three aircraft, and by the end of this year, 11 will be manufactured. As the engines start coming in, our delivery to the IAF will start”

If the order for the 97 Tejas Aircrafts following the existing order for 83 Tejas aircrafts under production comes in, HAL’s order book is expected to reach ₹2.5 lakh crore by mid-2025 Production Boosting its production capacities is a key element for the growth that HAL is looking for. HAL announced it is setting up new manufacturing units and partnering with private players L&T to enhance production capacity and reduce reliance on foreign suppliers. This collaborative approach is expected to enhance its production capacity from 12-14 aircraft per year to 16-18 aircraft per year. HAL has already delivered over 1,900 aircraft and helicopters to the Indian Armed Forces, including the iconic MiG-21, Jaguar, and Sukhoi-30MKI.

With Prime Minister Narendra Modi in the USA for the next few days, the media is abuzz about the Technology Transfer agreement on the GE 414 engine. When IAD Magazine asked him specifically about any agreement being announced during the Prime Minister’s Washington visit, the HAL Chairman said, “HAL is discussing with the USA for the GE 404 engines and expects a major announcement on GE 414 soon, enhancing its indigenous manufacturing capabilities”.

With its poor performance on the export front continuing to be a big worry, HAL is pursuing export opportunities for its aircraft and helicopters, particularly in Southeast Asia and other regions for the Dornier 228 and Advanced Light Helicopter. HAL is actively pursuing export opportunities for its aircraft and helicopters, particularly in Southeast Asia and other regions. With a strong focus on indigenization, HAL aims to increase its export share to 10-15% of its total revenue. Currently, HAL exports aircraft and helicopter spares to over 30 countries.

HAL announced increased investments in research and development (R&D) to develop new technologies and upgrade its existing products. The company has allocated ₹1,300 crore for R&D in the current financial year. Some of the ongoing projects include the development of the LCA-2, the Indian Multi-Role Helicopter, and Advanced Medium Combat Aircraft (AMCA).

HAL’s recent recognition as a Maharatna company is a testament to its growth, resilience, and strategic contributions to India’s aerospace and defense sectors. This achievement not only reflects HAL’s robust financial health but also underscores its critical role in advancing India’s self-reliance in defense production and enhancing its global standing in the aerospace industry.

With its enhanced production capacity, focus on R&D and strategic partnerships, HAL is poised to play a vital role in strengthening India’s defense capabilities and making India’s skies safer.






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