In a move to expedite indigenous production and meet the requirements for the upcoming Tejas MkII Light Combat Aircraft, Hindustan Aeronautics Ltd (HAL) is poised to outsource nearly half of the manufacturing for the GE 414 engines to the private sector.
This was confirmed by the newly appointed chairman and managing director of HAL, DK Sunil, in an interview with ET.
Sunil revealed that India is on the cusp of finalizing a deal with the US to acquire advanced fighter jet engine technology this financial year. He also indicated that HAL expects the plant producing these engines to be operational within three years, perfectly aligning with the development timeline for the Tejas MkII, which will be powered by these locally-manufactured GE 414 engines.
Originally, the US manufacturer GE had agreed to a 56% technology transfer, but this has been significantly increased to 80%, encompassing critical technologies, after intervention from higher levels of government. A negotiation committee will soon be established to iron out the technical and commercial aspects of this deal, estimated to be valued at over $1 billion.
In a significant move towards greater private sector participation, the CMD highlighted that a substantial portion of the engine manufacturing work will be outsourced.
Several Indian companies, including MTAR Hyderabad, Indo MIM Bengaluru, L&T, Godrej, and Azad engineering, possess the specialized expertise needed for this undertaking.
Sunil elaborated that HAL's typical outsourcing model involves about 40-45% of its work, and a similar approach will be adopted for the engine manufacturing.
Furthermore, the new CMD expressed confidence that HAL's order book is set to expand significantly in the near future, fueled by the government's strong emphasis on the Make in India initiative.
He stated that the current order book stands at approximately ₹1.10 lakh crore, and pending contracts are expected to elevate this figure to ₹2.1 lakh crore within a year.
This surge in orders will encompass upcoming contracts for 97 additional LCA Mk1A aircraft, an order for 156 light combat helicopters, and several orders for Advanced Light Helicopters.
Sunil assured that these orders will ensure a steady workflow for the next five to six years. He further emphasized that projects like the LCA Mk2, Indian Multi Role Helicopter, and Advanced Medium Combat Aircraft will keep HAL engaged well into the next decade.
