For 156 cutting-edge light combat helicopters, MoD seals ₹62,700 crore deal with HAL, powering India’s defence and creating 8500 jobs.
On Friday, the Union Ministry of Defence (MoD) signed two contracts with Hindustan Aeronautics Limited (HAL) worth ₹627 billion. The contracts are for the supply of 156 Light Combat Helicopters (LCH), Prachand, to the Indian armed forces. The first contract is for 66 LCHs to the Indian Air Force (IAF), and the second for 90 LCHs to the Indian Army.
The LCH is India’s first indigenously designed combat helicopter, capable of operating at altitudes above 5,000 metres.
According to the MoD, the helicopters will be delivered over a period of five years, starting in the third year of the agreement. More than 65% of its components will be manufactured domestically, involving over 250 Indian companies, primarily small and medium-sized enterprises (MSMEs). This initiative is expected to create more than 8500 direct and indirect jobs, boosting the local economy.
Additionally, the MoD signed a contract with Metrea Management for wet leasing a flight refuelling aircraft (FRA) to support air-to-air refuelling training for IAF and Indian Navy pilots.
The KC135 aircraft, which is part of the agreement, will be delivered within six months, marking the IAF’s first-ever wet lease of an FRA.
With these agreements, the MoD has now signed 193 defence contracts in 2024-25, valued at over ₹2.09 trillion, setting a new record. This is nearly double the previous highest figure.
Of these, 177 contracts (92%) are with domestic industries, with a combined value of about ₹1.68 trillion (81%). This underscores the government’s commitment to boosting indigenous defence manufacturing.
