Centre signs Rs 26K cr contract with HAL for 240 aero engines

New Delhi: In a boost for local defence manufacturing, the Centre on Monday signed a Rs 26,000 crore contract with the Hindustan Aeronautics Limited (HAL) for 240 aero engines (AL-31FP) for Su-30 MKI aircraft.

According to the Ministry of Defence (MoD), these aero engines will be manufactured by the Koraput Division of HAL and are expected to fulfil the need of the Indian Air Force (IAF) to sustain the operational capability of the Su-30 fleet for the defence preparedness of the country.

HAL would supply 30 aero engines per annum as per the contractual delivery schedule. The supply of all 240 engines would be completed over the period of the next eight years, according to the ministry.

HAL plans to take support from the country’s defence manufacturing ecosystem, involving MSMEs and public and private industries for manufacturing these aero engines. By the end of the delivery programme, HAL would enhance the indigenisation content up to 63 per cent to achieve an average of over 54 per cent. This would also help increase the indigenous content of repair and overhaul tasks of the aero engines, the ministry noted.

Earlier this month, the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, approved a proposal for the procurement of 240 aero engines.