HAL's £50,000 Crore Contract with UK Ministry of Defence

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Which Indian company received a contract worth Rs 50,000 crore from the UK Ministry of Defence?

Hindustan Aeronautics Limited (HAL)

What method was used to handle the tender for the procurement of Light Combat Helicopters (LCH)?

Single Vendor Contract (SVC) method

Where were the test flights of the Prachand helicopters conducted?

Ladakh

What is the main purpose of the Light Combat Helicopter (LCH)?

Destruction of Enemy Air Defense (DEAD) and Counter Insurgency (CI)

What percentage of local content value is expected in the LCH?

55%

What is the expected duration for which the LCH will be India’s main combat helicopter?

30-40 years

What was the value of the previous order given to HAL for LCH units?

Rs 3,887 Crore

What is the significance of the LCH in terms of India’s defense infrastructure?

It increases the Indian military’s tactical capabilities while lowering its reliance on combat helicopters from other countries

What is the potential future use of the LCH?

Both for domestic use and export

What does the development of the LCH indicate about India’s goals?

India is becoming more determined to improve its defense infrastructure

Study Notes

Hindustan Aeronautics Limited (HAL) and the UK Ministry of Defence Contract

  • HAL, an Indian state-owned aerospace and defense company, received a contract worth approximately Rs 50,000 crore from the UK Ministry of Defence, the largest single order for helicopters given to an Indian company.
  • The contract is for the procurement of Light Combat Helicopters (LCH), also known as "Prachand."

Procurement and Contractual Details

  • The tender was handled through the Single Vendor Contract (SVC) method, with only HAL eligible.
  • The company will make a techno-commercial bid, which will be discussed with the Defense Minister until an agreement is reached.

Specifications of the LCH

  • The Prachand helicopters are designed to operate effectively in Indian terrain and have demonstrated their capabilities in high-altitude test flights in Ladakh.
  • The LCH can fly at high altitudes and is equipped with advanced weapons for combat, making it suitable for various situations, including Combat Search and Rescue (CSAR), Destruction of Enemy Air Defense (DEAD), and Counter Insurgency (CI).
  • The helicopters can also engage slow-moving aircraft and Remotely Piloted Aircraft (RPAs) in various weather and terrain conditions.

Strategic Importance and Future Impact

  • The LCH is expected to be India's main combat helicopter for the next 30-40 years.
  • The helicopter will enhance the Indian military's tactical capabilities while reducing its reliance on combat helicopters from other countries.
  • With an initial local content value of over 55% and potential for growth, the LCH could be exported in the future.

Previous Developments and Economic Implications

  • In 2022, the government ordered 15 LCH units worth Rs 3,887 crore, including infrastructure development costs.
  • This development demonstrates India's growing commitment to enhancing its defense infrastructure and aerospace capabilities.

Hindustan Aeronautics Limited (HAL) secured a massive contract with the UK Ministry of Defence for the procurement of Light Combat Helicopters (LCH). Learn more about this significant deal.

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