HAL plans to outsource 35% of LCA manufacturing to private sector

Gearing up for its biggest order yet under the Make in India initiative, state owned Hindustan Aeronautics Limited (HAL) plans to outsource a significant part of the estimated Rs 38,000 crore contract to the private sector.

The leading aeronautical firm is in line to bag a contract to manufacture 83 of the LCA Mk 1A fighters — to be equipped with advanced radars, sensors and indigenous weaponry — and is doubling its annual production capacity to meet the requirement.

HAL chairman R Madhavan told ET that the first of the upgraded fighters can be delivered within three years of the order being placed and a significant amount of manufacturing will go to private sector companies such as Larsen and Toubro, Dynamatics, VEM Technologies and Alpha Design “We have planned that four vendors will supply major parts of the fuselage for the fighters. With regard to the manufacturing part, we plan to outsource almost 35% to the private sector,” said Madhavan.

Several other Indian vendors will also be involved in the project, he said.

HAL has put in place the infrastructure to double its capacity to produce 16 of the fighter jets every year and has a contingency plan to increase it further if the need arises. “The second (production) line has been set up. With two lines we can manage 16 a year and if really required we can put up a third line as well,” said Madhavan.

By: ET