Defence Ministry Inks ₹260B Deal For Aircraft Engines

Aiming to boost indigenisation and defence readiness, the Union Ministry of Defence has entered a ₹260 billion deal with Hindustan Aeronautics Limited for advanced engines for Su-30MKI aircraft.

On Monday, the Ministry of Defence (MoD) finalised a ₹260 billion contract with Hindustan Aeronautics Limited (HAL) for 240 AL-31FP aero engines intended for Su-30MKI aircraft.

According to the Defence Ministry, the Koraput Division of HAL will produce these aero-engines, which are intended to meet the Indian Air Force’s requirement for maintaining the operational readiness of the Su-30 fleet and ensuring the country’s defence readiness.

As per the contract, HAL is expected to deliver 30 engines annually, with the entire supply of 240 engines scheduled for completion within the next eight years.

Furthermore, HAL disclosed plans to leverage India’s defence manufacturing ecosystem during production by collaborating with MSMEs and public and private sector industries.

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By the end of the delivery schedule, HAL aims to increase the indigenisation of the engines to 63%, up from the current average of 54%. This initiative will also bolster the indigenous content involved in repairing and overhauling these aero engines.

Rajnath Singh, the Union Minister of Defence, expressed his enthusiasm on the deal in an X post, “This is a significant milestone in our Make in India campaign. It will strengthen the aero-engine manufacturing in India and add momentum to our aim of Aatmanirbharta.”

Several dignitaries attended the event, including Defence Secretary Shri Giridhar Aramane, Secretary (Defence Production) Shri Sanjeev Kumar, and Chief of the Air Staff Air Chief Marshal VR Chaudhari.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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