HAL Secures ₹26,000 Crore Contract for 240 AL-31FP Aero-Engines for Su-30 MKI Aircraft

Hindustan Aeronautics Limited (HAL) has announced a landmark contract with the Ministry of Defence (MoD) for the supply of 240 AL-31FP aero-engines, valued at over ₹26,000 crore. This significant agreement, approved by the Cabinet Committee on Security (CCS), marks a major milestone in India’s defence sector and supports the Aatmanirbhar Bharat initiative aimed at boosting indigenous manufacturing capabilities.

The contract, signed on September 9, 2024, in New Delhi, was executed in the presence of senior MoD officials, including Defence Secretary Shri Giridhar Aramane and Chief of the Air Staff Air Chief Marshal VR Chaudhari. The deal will see HAL providing 240 AL-31FP aero-engines for the Su-30 MKI aircraft fleet of the Indian Air Force (IAF). These engines are crucial for sustaining the operational capability of the Su-30 fleet, ensuring that the IAF remains equipped to meet the nation’s defence needs.

The manufacturing of these aero-engines will be undertaken at HAL’s Koraput Division, with a delivery schedule that spans eight years. HAL is set to supply 30 engines per annum as part of the agreement. The contract not only underscores HAL’s commitment to enhancing national defence readiness but also highlights the company’s role in advancing India’s self-reliance in defence production.

To support the manufacturing process, HAL will engage with the country’s defence manufacturing ecosystem, including Micro, Small, and Medium Enterprises (MSMEs) and both public and private sectors. By the end of the delivery period, HAL aims to increase the indigenisation content to up to 63%, achieving an average of over 54%. This enhancement will also bolster the indigenous content of the Repair and Overhaul tasks associated with these aero-engines, further contributing to India’s defence capabilities and industrial growth.

About Hindustan Aeronautics Ltd 

Hindustan Aeronautics is involved in the business of manufacturing aircraft and helicopters and also the repair and maintenance of aircraft and helicopters.

On September 10, 2024, the share price of Hindustan Aeronautics Ltd opened at ₹4,680.00, touching the day’s high at ₹4,736.90, as of 9:43 AM on the NSE.

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