For self-reliance, there has to be room for many players: HAL MD

He said competitive lobbying would no longer ensure that contracts would be given because the procurement processes were transparent

The entry of private industry into the defence manufacturing space would drive collaborative growth and should not be viewed solely through the lens of competition, said Hindustan Aeronautics Limited (HAL) Chairman and Managing Director C B Ananthakrishnan on Thursday.

Speaking with DH on the sidelines of the Global Investors Meet, Ananthakrishnan rejected suggestions that the Tata-Airbus consortium’s new military transport aircraft manufacturing facility in Vadodara signalled a break from the state-owned HAL's "monopoly" in the sector. "We don’t see the development as a challenge," he said. "When the goal is to attain self-reliance (in the defence sector), there has to be room for many players. There should be more engagement with the private sector at the design stage itself. The future will be in a synergy of capabilities."

Ananthakrishnan said that competitive lobbying would no longer ensure that contracts would be given because the procurement processes were transparent.

Several countries, including Argentina, had shown interest in HAL’s indigenously designed Light Combat Aircraft (LCA) and Advanced Light Helicopter, said Ananthakrishnan. Official teams from Argentina had visited India and flown the fighters. He said, "The multiple options that we have - of helicopters, fighter aircraft and trainers - have generated their interest." Talks around the procurement of helicopters were in the initial stage, he said.

HAL had, during the DefExpo in Gandhinagar last month, concluded a Rs 6,800-crore contract with the Indian Air Force (IAF) for 70 HTT-40 trainer aircraft. "Once we start delivering the aircraft, we expect a lot of interest for these trainers that also come with upgrades," the HAL CMD said. HAL is scheduled to deliver the first of its LCA-Mk1a aircraft to the IAF in February 2024.

"We have an order book of about Rs 90,000 crore," he said. "There are additional orders of about Rs 36,000 crore that are in advanced stages of negotiations; we hope to finalise orders of over Rs 1.2 lakh crore in the next year."

Potential export orders and the extension of ongoing limited series programmes like the light combat and light utility helicopters placed the company with "comfortable" growth potential. "As of today, we are registering around 7per cent to 8per cent growth," Ananthakrishnan said. "Starting 2024-25, we expect double-digit growth."