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News: The Union Cabinet has approved procurement of 70 HTT-40 Basic Trainer Aircraft from Hindustan Aeronautics (HAL) for the Indian Air Force at a cost of Rs 6,828.36 crore. The aircraft will be supplied over a period of six years. HTT-40 is a turbo prop aircraft and is designed to have good low speed handling qualities and provide better training effectiveness. The aircraft contains ~56% indigenous content which will progressively increase to over 60% through indigenisation of major components and subsystems. The HAL would engage Indian private industry, including MSMEs, in its supply chain
Views: HAL already received this contract of 70 HTT-40 basic trainer aircrafts in Oct 2022 during 12th DefExpo which was subjected to government approvals. As the govt has approved now, the execution will start for these trainer aircrafts and will be delivered to IAF over the next six years. The company expects an order of additional 30 HTT-40 also in the next 3-5 years as there is a total requirement of 106 basis trainer aircrafts from IAF. HTT-40 will eventually replace the Swiss-made Pilatus aircraft bought in 2012. HAL is also under process of executing second stage multi-role Tejas MK1 and MK1A trainer aircrafts. HAL has order backlog at ~| 84000 crore (~3.2x TTM revenues) gives strong visibility for the coming period
Impact: Positive