Defence Ministry Inks ₹26,000 Crore Deal with HAL for 240 Aero Engines

The Ministry of Defence has signed a significant contract with Hindustan Aeronautics Limited (HAL) valued at ₹26,000 crore for the supply of 240 AL-31FP aero engines. These engines are intended for the Indian Air Force’s Sukhoi-30MKI fighter jets, enhancing the fleet’s operational readiness and boosting India's defence capabilities.

Under this contract, the engines will be produced by HAL’s Koraput Division, which specializes in aero engine manufacturing. HAL is expected to deliver 30 engines annually, with the entire order slated for completion within the next eight years. This project will ensure the long-term reliability and performance of the Sukhoi-30MKI fleet, which is a critical component of India's air defence.

The contract aligns with the Indian government’s Atmanirbhar Bharat initiative, promoting self-reliance in defence manufacturing. HAL plans to collaborate with numerous small and medium-sized enterprises (MSMEs), as well as private and public sector industries, to source components and materials, strengthening the country’s defence manufacturing ecosystem.

This deal marks a significant step in the Ministry of Defence’s efforts to enhance indigenization in the aerospace sector. The involvement of HAL and its partners in manufacturing these engines domestically will not only reduce dependency on foreign suppliers but also create numerous job opportunities across the defence sector.

This development is confirmed as a contract, further cementing HAL’s position as a key player in India’s defence manufacturing landscape. It also underscores the government’s commitment to building a robust, self-reliant defence industry.

News by Rahul Yelligetti