- 21 Oct 2022
- ICICIdirect Research
IAF, HAL conclude Rs 6,800 crore contract for 70 HTT-40 indigenous basic trainer aircraftHAL - 2731 Change: 24.35 (0.90 %)
The Indian Air Force (IAF) and the Hindustan Aeronautics (HAL) have concluded a Rs 6,800 crore contract for 70 HTT-40 indigenous basic trainer aircraft. HAL has also signed an MOU with Indian Navy for maintenance & repair of RD33 Mk engine of MiG 29K aircrafts. In an another MOU signed with IAI (Israel Aerospace Industries), HAL & IAI will collaborate for leasing, operation and maintenance of fixed wing Unmanned Ariel Vehicles (UAVs) to Indian defence forces. For LCA Tejas MK1A also, HAL has signed MoUs with Larsen & Toubro (for manufacturing 22 sets of wing assembly), with Lakshmi Machine works (for manufacturing 40 sets of air intake assembly) and with Dynamatic technologies (for long-term production of Front Fuselage).
This contract of 70 HTT-40 trainer aircrafts was expected as the management discussed about this in earnings calls. In August 2020, the Defence Acquisition Council (DAC) approved the procurement of 106 HTT-40 for the IAF of which post certification 70 HTT-40 will be initially procured from HAL and balance 36 HTT-40 will be procured after operationalisation of HTT-40 fleet in the IAF. MoUs signed for LCA Mk1A components with the three private players will help in faster execution of the project which is under production process from HAL. MoUs signed for MiG29K engines with Navy and for UAVs with IAI is also positive for HAL.