Centre Signs Rs 26,000 Crore Deal With HAL For 240 Aero Engines

The Centre has signed significant Rs 26,000 crore contract with Hindustan Aeronautics Limited (HAL) for the procurement of 240 aero engines (AL-31FP) designed for Su-30 MKI aircraft. This agreement, announced on Monday, marks a major boost for local defense manufacturing and aims to support the operational capabilities of the Indian Air Force (IAF).

The engines will be produced by HAL’s Koraput Division, with a delivery schedule set to provide 30 engines annually over next eight years. The contract reflects a strategic effort to enhance indigenous defense production, as HAL plans to collaborate with the domestic defense manufacturing ecosystem, including MSMEs and both public and private industries.

By the end of delivery period, HAL is expected to increase the indigenization content of these engines to up to 63%, from an average of 54%. This move is anticipated to bolster indigenous component of repair and overhaul tasks for these engines.

The decision follows approval from the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi. This initiative is part of a broader effort to strengthen defense capabilities and promote self-reliance in military technology. Additionally, Defense Minister Rajnath Singh highlighted that ‘GE-414’ engines for fighter jets will now also manufactured in India.