The defence ministry) has signed a deal with Hindustan Aeronautics Limited (HAL) for the manufacture of 240 AL-31FP Aero Engines for Su-30MKI aircraft, valued at over ₹26,000 crore.

What Happened: The contract was formalised by senior officials from the Ministry of Defence and HAL in New Delhi on September 09, 2024. Last week, the Cabinet Committee had greenlighted this contract. The engines, containing over 54% indigenous parts, will be produced at HAL's Koraput division.

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According to the press release, “HAL would supply 30 aero-engines per annum as per the contractual delivery schedule. The supply of all 240 engines would be completed over the next eight years.”

During the manufacturing process, HAL intends to utilise the country’s defence manufacturing ecosystem, involving micro, small and medium enterprises and public and private industries. By the end of the delivery programme, HAL aims to increase the indigenisation content up to 63%, achieving an average of over 54%.

This initiative is also anticipated to enhance the indigenous content of repair and overhaul tasks of the aero-engines.

This contract follows a recent approval by the Defence Acquisition Council (DAC) for procurements worth ₹1.44 lakh crore for the Indian Armed Forces, including future-ready combat vehicles (FRCVs) and air defence fire control radars for the army, as well as Dornier 228 aircraft, next-generation fast patrol vessels and next-generation offshore patrol vessels for the Indian Coast Guard.

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