Government Signs Contracts Worth Rs 62,700 Crore with HAL for 156 LCH Supply
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Synopsis
On March 28, the Indian government signed two significant contracts with HAL worth Rs 62,700 crore for 156 Light Combat Helicopters, aimed at bolstering the capabilities of the IAF and Indian Army. This procurement is expected to enhance domestic defense production and create thousands of jobs.
Key Takeaways
- Contracts worth Rs 62,700 crore signed with HAL.
- Delivery of 156 Light Combat Helicopters planned.
- Over 250 domestic companies involved in production.
- Creation of 8,500 jobs anticipated.
- Part of the government’s self-reliance strategy in defense.
New Delhi, March 28 (NationPress) The government has finalized two agreements totaling Rs 62,700 crore with Hindustan Aeronautics Limited (HAL) for the delivery of 156 Light Combat Helicopters (LCH), known as Prachand.
The initial contract entails the provision of 66 LCHs to the Indian Air Force (IAF), while the second contract will see 90 LCHs supplied to the Indian Army, as reported by the Ministry of Defence.
The delivery of these helicopters is expected to start in the third year and will be distributed over a five-year timeline.
The LCH is India’s first combat helicopter that has been designed and developed indigenously, capable of functioning at altitudes exceeding 5,000 metres.
This helicopter incorporates many components that are designed and manufactured within India, with a target of achieving an overall indigenous content exceeding 65 percent during the procurement process.
This initiative will engage over 250 domestic companies, primarily MSMEs, and is set to create more than 8,500 direct and indirect jobs.
Additionally, the ministry entered into a contract with Metrea Management for the wet leasing of a Flight Refuelling Aircraft (FRA), which will support air-to-air refueling training for IAF and Indian Navy pilots.
Metrea is expected to deliver the FRA (KC135 Aircraft) within six months, marking the first FRA to be wet leased by the IAF.
With these three contracts signed, the total number of agreements executed by the Ministry of Defence in 2024-25 has reached 193, with an overall contract value surpassing Rs 2,09,050 crore, which is the highest recorded and nearly double the previous maximum.
Of these, 177 contracts (92 percent) are awarded to the domestic industry, with a total value of Rs 1,68,922 crore (81 percent).
On Thursday, the Ministry of Defence also signed a contract with the public sector Armoured Vehicle Nigam Limited for the acquisition of the Nag Missile System (NAMIS) tracked version of the anti-tank weapon platform, as well as another agreement with Force Motors Ltd and Mahindra & Mahindra Ltd for approximately 5,000 light vehicles for the armed forces, amounting to around Rs 2,500 crore.
These contracts fall under the "Buy Indian-Indigenously Designed Developed and Manufactured" category, which is part of the government’s initiative to foster self-reliance in defense production.
