HAL Scores Big: ₹62,700 Crore Chopper Contract

In its largest-ever helicopter procurement, the Ministry of Defence (MoD) has signed a ₹62,700 crore contract with Hindustan Aeronautics Ltd (HAL) for 156 Light Combat Helicopters (LCH) Prachand.

Following approval from the Cabinet Committee on Security, the MoD finalized two agreements with HAL—one for 66 LCHs for the Indian Air Force (IAF) and another for 90 for the Indian Army. The Army’s contract alone is valued at approximately ₹40,000 crore, according to HAL sources.

Additionally, the MoD signed a separate agreement with Metrea Management for the wet leasing of a KC-135 flight refueling aircraft (FRA). This initiative will enhance mid-air refueling training for IAF and Indian Navy pilots and marks the IAF’s first-ever wet leasing of an FRA. The aircraft is expected to be operational within six months.

With these latest agreements, the MoD has signed 193 contracts in FY24-25, bringing the total deal value to a record ₹2,09,050 crore—nearly double the previous high. Notably, 177 of these contracts, worth ₹1,68,922 crore, are with domestic companies, reinforcing the government's focus on self-reliance in defense manufacturing.

HAL will commence production of the LCHs at its Bengaluru facility before transitioning to Tumakuru, Karnataka, to scale up manufacturing to 30 helicopters annually. The first deliveries are expected within three years, with all units completed within five years. This deal significantly boosts HAL’s order book to nearly ₹2 lakh crore.

Developed in response to operational needs identified during the 1999 Kargil War, the LCH is India's first indigenously designed combat helicopter capable of operating at altitudes above 5,000 meters. The project involves over 250 domestic suppliers, primarily MSMEs, and is expected to generate more than 8,500 direct and indirect jobs. The MoD aims to ensure over 65% indigenous content in the LCH's production, further strengthening India’s defense manufacturing ecosystem.

News by Rahul Yelligetti.