Defence Ministry Inks Rs 2,312 Crore Contract with HAL for Dornier Aircraft Production
In a significant move to bolster the Make-in-India initiative, the defence ministry on Thursday signed a major contract worth Rs 2,312 crore with defence public sector undertaking Hindustan Aeronautics Limited (HAL). The agreement is for the production of eight Dornier 228 Aircraft for the Indian Coast Guard, enhancing India's maritime security capabilities.
Contract Signed Under Buy (Indian) Category
The contract was formalized under the "buy (Indian) category" in the presence of Defence Secretary Rajesh Kumar Singh. This strategic decision underscores the government's unwavering commitment to the Aatmanirbhar Bharat (self-reliant India) vision, aiming to reduce dependency on foreign defence imports and strengthen domestic manufacturing.
This procurement is expected to have a ripple effect across the economy by:
- Generating significant direct and indirect employment opportunities.
- Strengthening HAL's production ecosystem and supporting a broad network of MSMEs and ancillary industries.
- Creating sustained opportunities in maintenance, repair, and overhaul (MRO), as well as life cycle technical support for the aircraft.
HAL's Expanding Defence Portfolio
HAL is currently engaged in a wide array of high-profile defence projects, managing a massive order book that includes:
- Production of over 180 Tejas Mk-1A fighter jets and development of Tejas Mk-II.
- Development and production of the Light Combat Helicopter (LCH), with an additional 156 units of the Prachand variant ordered.
- Work on the Indian Multi-Role Helicopter (IMRH), Light Utility Helicopter (LUH), and Dhruv Advanced Light Helicopter (ALH).
- Production of 70 HTT-40 basic trainer aircraft.
- Licensed production of Su-30MKI engines and MiG-29 upgrades.
Strong Financial Performance Reported
In related news, HAL reported robust financial results for the December quarter of the current financial year. The defence PSU posted a 29.6% year-on-year increase in its consolidated net profit. Profit after tax for the quarter stood at Rs 1,866.7 crore, compared to Rs 1,439.8 crore in the same period last financial year (Q3 FY25), according to an exchange filing.
This contract not only reinforces India's push for self-reliance in defence but also positions HAL as a key player in the global aerospace sector, driving innovation and economic growth.
