HAL on Verge of Signing Rs 70,000 Crore Deal to Source Tejas Mk1A Parts from Domestic Firms

India's state-owned aerospace and defense giant, Hindustan Aeronautics Limited (HAL), is reportedly poised to secure a massive Rs 70,000 crore ($8.5 billion) deal with numerous Indian defense firms, both public and private.

This significant agreement centers on obtaining third-party supplies of vital parts and subsystems integral to the upcoming production of an additional 97 Tejas Mk1A fighter jets destined for the Indian Air Force (IAF).

Partnerships for Progress​

The potential deal marks a crucial shift toward self-reliance within India's defense sector. Key players like the National Aerospace Laboratories (NAL), Dynamatic Technologies, Vem Technologies, Larsen & Toubro (L&T), and Tata Advanced Systems Limited (TASL) are projected to benefit significantly.

These firms have cultivated a reputation as reliable suppliers of essential aerostructures for the domestically-produced Tejas fighter jet.

Boosting the Tejas Fleet​

This Rs 70,000 crore agreement arrives during ongoing discussions between HAL and the IAF concerning the procurement of 97 additional Tejas Mk1A fighter jets. The new order would follow a previous order in February 2021 for 83 Tejas Mk1A aircraft.

This second order stands to dramatically expand the IAF's Tejas fleet, further bolstering India's commitment to indigenous fighter jet technology.

Domestic Ecosystem Benefits​

HAL's decision to collaborate with Indian companies in procuring parts and subsystems holds the power to streamline production processes, diminish reliance on foreign suppliers, and establish a more resilient domestic aerospace sector.

Consequently, enhanced efficiency, greater cost-competitiveness, and technological innovation within the Indian defense industry could become tangible realities.

Awaiting Official Word​

Although reports from Zee News point to the deal's imminence, official confirmation from either HAL or the Ministry of Defence (MoD) remains pending.

Nevertheless, the deal's potential highlights a decisive step forward in India's journey to attaining self-sufficiency in meeting its defense needs.

Broader Implications​

Beyond the immediate benefits of the deal, this event reveals India's growing determination to establish itself as a global aerospace and defense manufacturing hub.

By fostering a robust domestic ecosystem of suppliers, HAL can position itself as a major player in the production of not only the Tejas but potentially other advanced aircraft in the future.

Furthermore, increased domestic production capabilities can open opportunities for India to export defense technologies, contributing to the nation's strategic independence and economic growth.

Conclusion​

HAL's potential Rs 70,000 crore deal represents a milestone moment in India's pursuit of aerospace autonomy.

If officially confirmed, this collaborative effort underscores the nation's dedication to building a self-reliant defense industry while advancing the capabilities of its indigenous Tejas fighter jet program.

 

[sanket]

This may help in Building Eco-system and making strong even MSMEs who contribute to Aer-sector.In Future it may deliver Fighter jets on Time .

 

[GMR]

Along with building eco system, beauty of indigenisation is that the money spent remains within our own economy... Hope & wish that IA realises this.

 

[The Presence]

This may help in Building Eco-system and making strong even MSMEs who contribute to Aer-sector.In Future it may deliver Fighter jets on Time .

Please build your grammar too.

 

[Pink Panther]

This may help in Building Eco-system and making strong even MSMEs who contribute to Aer-sector.In Future it may deliver Fighter jets on Time .

Hope HAL get's the whole jet from one or more private companies, they can may be stamp their name on it once the jets are built already.

 

[Apocalypse gupta]

Hope HAL get's the whole jet from one or more private companies, they can may be stamp their name on it once the jets are built already.

ridiculous statement. HAL is responsible for final assembly and design. There is no company in the world that builds entire fighter on its own. It would be terribly inefficient.

 

[Akhil]

This is a HUGE amount for MSMEs. I have always said indigenisation is exponential. It will be slow in starting and proliferate at an explosive rate.

That's why no private company could replace HAL. Atleast not now. No matter how much private shrills cry.
Government is selecting which MSMEs to give contract, which MSMEs can meet security requirements, etc indirectly through HAL.

Alternatively, the import lobby wants this money to leave India just because they miss their commision.
Imagine the extended supply chain benefit of this order. A well built manufacturing base is the greatest military weapon. Imagine the benefit to GDP, common workers.
Kudos to HAL & Kudos to Indian government.

 

[kumar]

Crucial to this, to secure engine supply from ge. Hope it is going on parallely.

 

[desigandu]

Bottleneck is GE F-404 engine supply constraints - which must be solved asap.

 

[Pink Panther]

ridiculous statement. HAL is responsible for final assembly and design. There is no company in the world that builds entire fighter on its own. It would be terribly inefficient.

HAL can't do everything, there is nothing wrong in outsourcing Tejas assembly to Private sectors for faster production rate, they already have so much on their plate to swallow like Dornier, Helicopter manufacturing, MIG-29 UPG and Super Sukhoi upgrades and many more.

 

[Pink Panther]

Bottleneck is GE F-404 engine supply constraints - which must be solved asap.

It might be tied to MRFA I guess.

 

[Akshat]

Along with building eco system, beauty of indigenisation is that the money spent remains within our own economy... Hope & wish that IA realises this.

But what about getting the system delivered in the first place? Do OFB and DRDO realize that?

 

[Akshat]

Bottleneck is GE F-404 engine supply constraints - which must be solved asap.

Bhai…at the present rate, HAL has enough engines to last for this whole decade and the next. Even if not a single new engine is delivered. So the bottleneck here is HAL.

 

[Akshat]

ridiculous statement. HAL is responsible for final assembly and design. There is no company in the world that builds entire fighter on its own. It would be terribly inefficient.

He means that HAL outsources the job of assembling the jet as well. And then brand it as HAL product. Probably the only time he made a sensible comment.

 

[Akshat]

This is a HUGE amount for MSMEs. I have always said indigenisation is exponential. It will be slow in starting and proliferate at an explosive rate.

That's why no private company could replace HAL. Atleast not now. No matter how much private shrills cry.
Government is selecting which MSMEs to give contract, which MSMEs can meet security requirements, etc indirectly through HAL.

Alternatively, the import lobby wants this money to leave India just because they miss their commision.
Imagine the extended supply chain benefit of this order. A well built manufacturing base is the greatest military weapon. Imagine the benefit to GDP, common workers.
Kudos to HAL & Kudos to Indian government.

Oh yeah. HAL has made 2 jets in the last 19 months. That’s something no private company will ever be able to do. So you are right. No one can ever replace HAL. Not today, not ever.

 

[Sudha]

This is a HUGE amount for MSMEs. I have always said indigenisation is exponential. It will be slow in starting and proliferate at an explosive rate.

That's why no private company could replace HAL. Atleast not now. No matter how much private shrills cry.
Government is selecting which MSMEs to give contract, which MSMEs can meet security requirements, etc indirectly through HAL.

Alternatively, the import lobby wants this money to leave India just because they miss their commision.
Imagine the extended supply chain benefit of this order. A well built manufacturing base is the greatest military weapon. Imagine the benefit to GDP, common workers.
Kudos to HAL & Kudos to Indian government.

What so new about in this article to crow about? Even before HAL was sourcing parts from others both public, private as well as foreign OEMs & it was only screw driving. Even now & future they will be doing the same.

 

[Pink Panther]

He means that HAL outsources the job of assembling the jet as well. And then brand it as HAL product. Probably the only time he made a sensible comment.

why indirect?.

 

[Sudha]

Irrelevant article. HAL was screw driving till date, so they must have been sourcing from private, public as well as foreign OEMs. The article only confirms that HAL will go on screw driving at its own pace delivering one plane per year.

 

[Sudha]

This may help in Building Eco-system and making strong even MSMEs who contribute to Aer-sector.In Future it may deliver Fighter jets on Time .

Did you ever think they were doing the same before also since they were only screw driving? I don't understand why the commentators are so excited on history presented in a new bottle.

 

[Sudha]

HAL can't do everything, there is nothing wrong in outsourcing Tejas assembly to Private sectors for faster production rate, they already have so much on their plate to swallow like Dornier, Helicopter manufacturing, MIG-29 UPG and Super Sukhoi upgrades and many more.

What are you so excited about? They were sourcing parts from others since they were only screw driving, noting new to crow about.

 

[Pink Panther]

What are you so excited about? They were sourcing parts from others since they were only screw driving, noting new to crow about.

I am excited about faster production rate.

 

[sanket]

Did you ever think they were doing the same before also since they were only screw driving? I don't understand why the commentators are so excited on history presented in a new bottle.

previously (Su-30MKI/MIG-29) Came with semi-knock-down kits which they Assembled , Now they are Integrating part by part with Different Vendors(Mostly India). thats Difference Even HAL also Modified Su-30 MKI to carry heavy Brahmos Missile which Russia demanded too much money .Once Eco-system is Established they can Increase the speed of Aircraft production .and this is stepping stone for Future Fighter jet manufacturing (Tejas MK2, TEDBF&AMCA). Most important getting confidence of MSMEs is important who are vendors

 

[Apocalypse gupta]

He means that HAL outsources the job of assembling the jet as well. And then brand it as HAL product. Probably the only time he made a sensible comment.

That is a ridiculous statement as well. As if HAL could pull it off secretly.

 

[Amit Ray]

He means that HAL outsources the job of assembling the jet as well. And then brand it as HAL product. Probably the only time he made a sensible comment.

That not possible, neither the comments are sensible. This is not some vegetable oil production.

 

[Amit Ray]

What are you so excited about? They were sourcing parts from others since they were only screw driving, noting new to crow about.

You must be a screwdriver specialist, so all you understand is screwdriving. You seem to have nil knowledge of manufacturing. And please stop you screwdriver comments everytime, we would like to hear something else from you.

 

[charminar_waale_ismail_bhai]

Any update on the Tejas's Taxi Trial which HAL was eyeing to start in February-2024?

 

[Sandeep]

Irrelevant article. HAL was screw driving till date, so they must have been sourcing from private, public as well as foreign OEMs. The article only confirms that HAL will go on screw driving at its own pace delivering one plane per year.

HAL mainly assembles the jet and to certify it safe and ready for service. It's the private sector and government sector companies who make most of the parts and components except for certain technology like engines etc.

 

[RG]

enough of this dreaming, planning planning and planning, make it happen, show some action and results.

 

[Akshat]

That not possible, neither the comments are sensible. This is not some vegetable oil production.

That’s what one should do when HAL can’t assemble on its own.

 

[Akshat]

That is a ridiculous statement as well. As if HAL could pull it off secretly.

Need not be a secret.