- 28 Jul 2022
- ICICIdirect Research
HAL signed a contract for 88 TPE331-12B enginesHAL - 2603 Change: 35.75 (1.39 %)
News: Hindustan Aeronautics Limited has signed a contract worth over $100 million with Honeywell for the supply and manufacturing of 88 TPE331-12B engines for the HTT-40 trainer aircraft. HTT-40 is a basic trainer aircraft, developed by HAL, to address the basic stage-1 training requirements of the IAF. The management has stated that there is a potential requirement of 70 such basic trainer aircrafts from IAF.
Views: We believe that the contract for 70 HTT-40 basic trainer aircrafts are under advanced stages of approval and order is expected to be placed this year from IAF (estimated value is Rs 4,600 crore). IAF has a total requirement of 106 basic trainer aircrafts after getting the delivery of 75 Pilatus PC-7 Mark-II trainer aircrafts in 2018. After placing the order for 70 HTT-40 with HAL this year, we expect IAF would look for ordering 36 more such aircrafts.