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India's HAL deepens private sector engagement through Make-II initiative

India’s Hindustan Aeronautics Limited (HAL) will make about 4,000 components used in military-aerospace production available for outsourcing to the country's private sector during fiscal year (FY) 2019–20.

The outsourcing initiative – framed through the Indian government’s ‘Make-II’ procurement category – features parts including fasteners and bearings, a wide range of “consumables” and line-replaceable units (LRUs), and items described as mechanical, rubber, electrical, and avionics.

India's HAL plans to facilitate greater private-sector involvement in producing components for platforms including the Tejas Light Combat Aircraft.

The components, recently detailed in a tweet by India’s defence secretary Ajay Kumar, number 3,750 through a series of new projects, with the total value of subcontracting opportunities cited at about INR101 billion (USD1.4 billion). The largest segments in terms of value comprise opportunities to produce mechanical items and LRUs, which are worth INR39.2 billion and INR36.3 billion respectively.

In his tweet, Kumar described HAL’s outsourcing effort for 2019–20 as “indigenisation [at a] pace never before”.

Kumar did not elaborate on the programme but details recently published by HAL show that the outsourced components will be integrated onto frontline platforms and systems manufactured by the defence public sector undertaking (DPSU).

These include the Tejas Light Combat Aircraft (LCA), the Dhruv Advanced Light Helicopter (ALH) and its Shakti engine, and the licenced produced Sukhoi Su-30MKI combat aircraft and its Saturn AL-31FP engine. HAL is expected to invite private-sector companies to bid for the subcontracting opportunities through expressions of interest (EOIs) published on its website.

According to a new ‘dashboard’ administered by the Ministry of Defence’s (MoD’s) Department of Defence Production (DPP), a total of 95 Make-II projects had been issued by the DPP and state-owned enterprises – comprising DPSUs and the Ordnance Factory Board (OFB) – up until 30 June.


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