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Private production line for LCA manufacturing: Hindustan Aeronautics

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State-run Hindustan Aeronautics Ltd (HAL) handed over the first two indigenously developed light combat aircraft (LCA) Tejas to the Indian Air Force in July.

With the National Democratic Alliance (NDA) government allowing up to 100% foreign direct investment (FDI) in the defence sector—49% FDI participation under the automatic route and beyond 49% through government approval—HAL, a Bangalore-based aerospace and defence firm, is looking at more private sector participation to boost defence manufacturing in India. The NDA government has placed defence orders worthRs.2 trillion to encourage domestic manufacturing and foreign investments.

In an interview with InfraCircle, T. Suvarna Raju, chairman and managing director of HAL, spoke about the opportunity for the Indian industry in defence production, role of the government’s ‘Make in India’ initiative and its light utility helicopters becoming operational shortly. Edited excerpts.

Now that India allows up to 100% FDI in defence, what are your expectations?

It is supposed to bring in a great change. Stakeholders can bring in (advanced) technologies and that will further fuel growth in defence production.

Do you have plans to work with private entities in India?

Yes, we want a third (assembly) line to be run by the private sector. In fact we want the private players to come in now and produce LCA or light combat helicopter (LCH) as we don’t want to make more investments into this space. As of now, our LCA project is doing well and the government has already placed orders for 100 LCA. We have also started a series of productions.

What role do you see for Indian manufacturers and suppliers in defence production, in the light of Make in India initiative?

We want to increase our production to 16 LCA a year. In the past, HAL would have added a third (assembly) line to create a capacity of 24 planes a year. But we don’t want to do it now; we want the industry people out there to come up with it. As for the ‘Make in India’ initiative, it is an opportunity for the Indian industry and they can make components and supply to us.

What’s the way ahead for HAL?

We are moving ahead with our plans for fixed-wing LCA, rotary-wing LCH and unmanned aerial vehicles (UAVs) besides others projects. HAL has helped develop Rustom—a remote-controlled, medium-altitude and long-endurance combat UAV. We are now trying to get a performance-based logistics system in place, which would be crucial for maintenance. Then there are MRO (maintenance, repair and overhaul) packages that we handle. We are one of the six nations in the world who make helicopters or have the capabilities of manufacturing choppers. We have developed advanced light helicopters; our advanced combat helicopter is ready and in a few days, HAL’s light utility helicopters will be operational.

http://www.vccircle.com/infracircle...cturing-hindustan-aeronautics-t-suvarna-raju/
 

https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647599

Ya news got posted there..

And about my views
upload_2016-9-27_11-52-57.png


https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647684


upload_2016-9-27_11-54-2.png

https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647873

upload_2016-9-27_11-44-14.png

https://defence.pk/threads/dassault...ussions-thread-2.230070/page-384#post-8731038


I am openly saying, soon you will hear the timelines are shifted for TejasMk1A. Its not gonna be ready by 2018 nor you will see production rate picking in next 3-4 years the way its intended. Thats the grave news i already have.
MOD people are obviously pissed and if and a big IF another LWF comes to IAF hands, then LCA itself will die down as a project bcz
  1. Neither HAL is in a position to give a proper bird as of now
  2. Nor in proper numbers
  3. support and maintenance comes much later
  4. Any new bird or a matured bird platform will straight away make IAF prefer them only
DM MP will soon take a review in next couple of months.. its going to be a banging session . In front of media it will be good sweet words and a brave face but reality will bite from inside. Need stringent course correction.

if L&T comes then it wont be 8 jets third line rather they would also set up easily 16+/year so combined line limit will be 32 but i can assure you it will be L&T folks producing 16 completely owing to penalties associated with the production rate time schedule and HAL producing around 50% of its 16/year line - combined it will be 24-26 / year max..
 

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This whole thing is rubbish.

NOBODY will invest money to set up a production line for LCA unless there is a firm order than can help the company recover the capital cost and operating cost AND make a profit.

Just a piped dream when even the IAF do not want the LCA and is secretly hoping that the project dies.
 
Thats seriously a lot better than some of the first projections which looked quite nightmarish.

Yes, its all quite dreamy.

With a production of 25 LCA per year, they will churn out 100 LCA's in 4 years.

What happens after that ? Fire all the employees and shut down the plant ?

or is the IAF going to issue new orders for 200 more LCA than can keep the plant running for the next 8 years ?
 
Yes, its all quite dreamy.

With a production of 25 LCA per year, they will churn out 100 LCA's in 4 years.

What happens after that ? Fire all the employees and shut down the plant ?

or is the IAF going to issue new orders for 200 more LCA than can keep the plant running for the next 8 years ?

India needs a lot more than 100 LCAs. Thats just the first tranche I believe.
 
Yes, its all quite dreamy.

With a production of 25 LCA per year, they will churn out 100 LCA's in 4 years.

What happens after that ? Fire all the employees and shut down the plant ?

or is the IAF going to issue new orders for 200 more LCA than can keep the plant running for the next 8 years ?

IF their job is to replace the Migs and reach 42 sqadrons, then we will need a lot more LCA's
 
India needs a lot more than 100 LCAs. Thats just the first tranche I believe.

Even the first 100 has come DESPITE the objections and protests from the IAF. It was Parrikar who bullied the IAF and pushed through that order after FORCING the HAL to induct a better Radar.

You seriously think IAF they will order a fresh order for 100 more ?

You think ANY private company will trust the IAF to order more and invest money in new production facilities ? What happens if the BJP looses the next election ? Do you really think the congress will support the LCA with new orders ?


The whole thing is fraught with Risk and Nobody who understands how the real world operate and how difficult it is to operate a company in India will ever talk about investing money in this project.

They will do it if there is a FIRM commitment by the IAF that will survive any change in govt. Do you see this happening any time soon ? What IAF want is the Rafale ....... not even the PAKFA.

IF their job is to replace the Migs and reach 42 sqadrons, then we will need a lot more LCA's

IAF believes in Quality i.e. Foreign Maal over Quantity i.e. Indian maal.

That is just the way it is. Wishful thinking is not going to change that.
 
IAF believes in Quality i.e. Foreign Maal over Quantity i.e. Indian maal.

That is just the way it is. Wishful thinking is not going to change that.

IAF can believe whatever it wants, its MOD which arm twisted IAF to get more LCA's, as long as Parrikar stays at the helm, this arm twsting will continue..
 
IAF can believe whatever it wants, its MOD which arm twisted IAF to get more LCA's, as long as Parrikar stays at the helm, this arm twsting will continue..

Yes, but no body is going to invest Hundreds of Millions of $ based on Parrikar's ambition of remaining the RM.

What if parrikar is to suddenly die in an accident ?
 
In short, LCA is being killed by the PSUs as always.

If L&T comes into play, you can be sure that HAL will be hard put to match it. L&T does not monkey around and is willing to throw money to attract the expertise and talent required to get the LCA upto the level it is required for induction into IAF seriously.

I think, we might find LCA going to L&T along with TCS .... lets see how things work out.
 
OT- What is the rate of current production from the HAL assembly? 1-2 aircrafts in a year.
HAL at its max capacity can churn out 10-12 aircrafts per year and for that too they need more investment in the assembly line.

It's about time MOD involves a private entity into the LCA production.
 
https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647599

Ya news got posted there..

And about my views
View attachment 338492

https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647684


View attachment 338493
https://defence.pk/threads/hal-tejas-updates-news-discussions-thread-2.351401/page-130#post-8647873

View attachment 338485
https://defence.pk/threads/dassault...ussions-thread-2.230070/page-384#post-8731038


I am openly saying, soon you will hear the timelines are shifted for TejasMk1A. Its not gonna be ready by 2018 nor you will see production rate picking in next 3-4 years the way its intended. Thats the grave news i already have.
MOD people are obviously pissed and if and a big IF another LWF comes to IAF hands, then LCA itself will die down as a project bcz
  1. Neither HAL is in a position to give a proper bird as of now
  2. Nor in proper numbers
  3. support and maintenance comes much later
  4. Any new bird or a matured bird platform will straight away make IAF prefer them only
DM MP will soon take a review in next couple of months.. its going to be a banging session . In front of media it will be good sweet words and a brave face but reality will bite from inside. Need stringent course correction.

if L&T comes then it wont be 8 jets third line rather they would also set up easily 16+/year so combined line limit will be 32 but i can assure you it will be L&T folks producing 16 completely owing to penalties associated with the production rate time schedule and HAL producing around 50% of its 16/year line - combined it will be 24-26 / year max..
Sorry for my noob questions @PARIKRAMA
But then, why isn't MOD intervening and forcing HAL ?
Doesn't MOD enjoy the final word on these matters ?
Don't they already realise what you have said with all the experts guiding them.
 

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