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Aerospace industry eyes biz worth Rs 12,500 cr

Young Bites. Dated: 12/14/2017 8:07:48 AM

Y B News
Jammu, Dec 13
On Tuesday, Hindustan Aeronautics Ltd (HAL) offered the aerospace vendors that feed its aircraft assembly lines a tantalising glimpse of major business opportunities ahead, adding up to some Rs 12,500 crore.
HAL Chairman T Suvarna Raju told a gathering of the company’s vendors in Bengaluru that they would soon participate in building 100 trainer aircraft — the indigenously designed Hindustan Turbo Trainer–40 (HTT-40). In addition, the Light Utility Helicopter (LUH), of which the Indian Air Force is committed to buying 187 pieces, is nearing certification.
“Given our large number of platforms with the Indian defence forces, we remain committed to increase the scope of work to our vendors to ensure success of our programmes. HAL is looking to produce 100 basic trainer aircraft HTT-40 soon, once spin tests are completed in the coming months. In the rotary wing segment, our efforts are on to achieve basic certification of LUH by the middle of 2018”, said Raju.
In 2013, then IAF chief, Air Chief Marshal NAK Browne wrote to the defence minister stating that the HTT-40 would cost Rs 59.31 crore in 2018, and escalate by 2020 to Rs 64.77 crore. That letter was intended to scuttle the HTT-40 project as too expensive, and make a case for importing more Pilatus PC-7 Mark II trainers from Switzerland.
Now, however, it has emerged that HAL will build the HTT-40 for an affordable Rs 45 crore apiece. With the defence ministry having already approved the procurement of 106 indigenous trainers for the IAF, this would translate into business worth about Rs 5,000 crore for the aerospace sector.
HAL has managed to develop the indigenous trainer for a frugal Rs 450 crore, employing internal company funds, Raju told Business Standard in July. An additional Rs 120 crore will go on establishing the HTT-40 manufacturing line.