September 10, 2024
New Delhi, India
In a significant push towards self-reliance in defence, the Ministry of Defence (MoD) has signed a contract with Hindustan Aeronautics Limited (HAL) worth over ₹26,000 crore for the supply of 240 AL-31FP aero engines for Su-30MKI aircraft. The contract was finalized in New Delhi on September 9, 2024, in the presence of Defence Secretary Giridhar Aramane and Chief of the Air Staff Air Chief Marshal VR Chaudhari.
Contract Details:
- Production and Delivery: The engines will be manufactured by HAL’s Koraput Division, with a planned supply of 30 engines per year. The total delivery of 240 engines will be completed over the next eight years.
- Indigenous Focus: The project aligns with the government’s Aatmanirbhar Bharat initiative, aiming to enhance local defence manufacturing capabilities. HAL will collaborate with various Micro, Small, and Medium Enterprises (MSMEs) and other public and private industries to increase indigenous content in the repair and overhaul of these engines.
- Operational Readiness: The engines are expected to sustain the Indian Air Force’s operational capability of the Su-30 fleet, ensuring continued defence preparedness.
Defence Manufacturing Growth:
India is focusing heavily on bolstering its defence and aerospace sectors, setting up multiple defence hubs and attracting investment. The government aims to achieve indigenous defence manufacturing worth ₹1,75,000 crore, including ₹35,000 crore in exports, by 2024-25.
Recent Achievements in Defence Exports:
- Record Defence Exports: India’s defence exports reached a record ₹21,083 crore (about USD 2.63 billion) in the financial year 2023-24, reflecting a 32.5% growth over the previous year. Defence exports have grown 31 times in the last decade compared to 2013-14.
This contract marks a major step in India’s journey towards self-reliance in defence manufacturing, contributing to the growth of the indigenous defence ecosystem and boosting India’s defence export capabilities. With global companies showing interest in sharing critical defence and aerospace technologies with India, the country is poised to become a significant player in the global defence market.
In today’s early trade HAL shares price was trading at Rs. 4700 a piece up close to a percent.
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