HAL's Strategic Move: Outsourcing Rs 25,000 Crore to Private Sector in Defence Boost

Hindustan Aeronautics Limited (HAL) secures a major Rs 62,500 crore deal for Light Combat Helicopters and plans to outsource Rs 25,000 crore worth of work to private firms, fostering industry growth. Defence Minister Rajnath Singh lauded the move, which aims to enhance self-reliance and reduce foreign dependency.

Hindustan Aeronautics Limited (HAL) has achieved a significant milestone by securing a substantial deal worth Rs 62,500 crore for Light Combat Helicopters, designated for the Indian Army and Air Force. In a strategic move to boost the domestic defence industry, HAL plans to outsource projects valued at approximately Rs 25,000 crore to private sector entities.

The decision follows the Cabinet Committee on Security's approval and the official signing of the contract between the Defence Ministry and HAL. Defence officials informed ANI that HAL will adhere to the successful Light Combat Aircraft (LCA) manufacturing model, involving private companies extensively in the Light Combat Helicopter (LCH) initiative.

Approximately 40% of the project work will be delegated to private firms, potentially invigorating the local defence ecosystem. HAL's facilities in Bengaluru and Tumkur, Karnataka, will spearhead production. Defence Minister Rajnath Singh, present during the unveiling of the first LCA Mk1A rear fuselage produced by the private sector, emphasized HAL's commitment to promoting self-sufficiency and minimizing foreign reliance.

Furthermore, HAL, as the nation's largest aerospace company, sustains an order book exceeding Rs 2 lakh crore, with expectations of forthcoming orders worth Rs 70,000 crore. This portfolio includes contracts for 12 Su-30 fighter jets and 83 LCA jets, underscoring HAL's pivotal role in strengthening India's defence capabilities.

(With inputs from agencies.)