Following the finalisation of a significant defence deal, Hindustan Aeronautics Limited (HAL) is set to outsource nearly ₹25,000 crore worth of work to private sector companies.
This development comes in the wake of the Cabinet Committee on Security approving a ₹62,500 crore contract for 156 Light Combat Helicopters (LCH) to be supplied to the Indian Army and the Air Force. The deal was officially signed between the Ministry of Defence and HAL on the same day of approval.
HAL will be adopting a similar production model as it did with the Light Combat Aircraft (LCA) programme. In the LCA project, major components such as the fuselage and wings were distributed among private sector firms like Larsen & Toubro and VEM Technologies.
According to defence officials, the same approach will now be followed for the LCH programme, with a substantial 40 percent share of the manufacturing work earmarked for private industry.
This move is expected to significantly boost the defence manufacturing ecosystem in India by fostering greater involvement from private enterprises. HAL is anticipated to issue tenders shortly to initiate this large-scale outsourcing process.
The production of the helicopters will take place at HAL’s facilities located in Bengaluru and Tumakuru in Karnataka. The initiative is also part of the broader vision to promote self-reliance in the defence sector and to reduce the country's dependence on foreign suppliers.
The Defence Minister, Rajnath Singh, was recently present at an event marking the delivery of the first rear fuselage for the LCA Mk1A. This particular component was manufactured by Alpha Tocol Engineering Services Private Limited, a private Indian company.
The occasion served as an example of the growing participation of domestic firms in critical defence manufacturing roles.
HAL, which is the largest aerospace company in India, is currently operating with an order book worth over ₹2 lakh crore. This includes contracts for 83 LCA Tejas fighter jets—10 of which will be trainer aircraft—as well as additional orders for 12 Su-30 fighter jets.
The company is also expecting further orders worth around ₹70,000 crore in the near future.
By outsourcing a significant portion of the LCH project to private companies, HAL aims to not only accelerate production timelines but also enhance industrial collaboration.
The step is seen as a major boost for the Indian private sector’s capabilities in high-technology defence manufacturing.
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