HAL to Award Rs 25,000 Crore Contracts to Private Sector in Historic Combat Helicopter Deal
Private Sector Set to Gain Major Share in HAL’s Rs 62,500 Crore Light Combat Helicopter Project
New Delhi: Hindustan Aeronautics Limited (HAL), after securing its biggest-ever order for Light Combat Helicopters (LCH), is gearing up to engage the private sector extensively by opening up contracts worth Rs 25,000 crore under the new manufacturing initiative.
Following the approval of the Rs 62,500 crore deal by the Cabinet Committee on Security, HAL and the Ministry of Defence formalized the agreement on the same day for the production of 156 LCHs for the Indian Army and the Indian Air Force. According to officials, this development is a significant step towards strengthening India’s indigenous defence manufacturing capability.
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“We will implement the same model used in the Light Combat Aircraft (LCA) programme,” defence officials told ANI. “HAL will soon issue tenders to involve private companies on a large scale in the LCH project.”
Earlier, HAL had subcontracted key parts of the LCA project—including components like fuselages and wings—to private companies such as Larsen & Toubro and Vem Technologies. A similar approach will be followed for the LCH project, with approximately 40% of the total deal value being outsourced to the private sector.
This strategy aims not only to accelerate production timelines but also to enhance the domestic defence ecosystem. The helicopters will be manufactured at HAL’s units in Bengaluru and Tumkur, Karnataka.
Recently, Defence Minister Rajnath Singh witnessed the handover of the first rear fuselage of the LCA Mk1A, developed by Alpha Tocol Engineering Services Pvt Ltd—an event that highlighted the growing capability of the private sector in defence manufacturing.
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HAL, India’s largest aerospace company, currently has a robust order book worth over Rs 2 lakh crore, which includes 83 LCA Tejas jets (10 trainer versions) and 12 Su-30MKI aircraft. Additionally, the company is anticipating new orders valued at over Rs 70,000 crore in the near future.
By outsourcing a significant portion of this massive order, HAL is placing a strong bet on private industry to accelerate India’s journey towards defence self-reliance and reduce dependency on foreign suppliers.
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