Rs 25,000 crore work share for private sector firms in HAL's mega 156 combat helicopter deal

NEW DELHI: After bagging the largest-ever order for Light Combat Helicopters (LCH), Hindustan Aeronautics Limited (HAL) is opening its doors wide to the private sector, offering contracts worth Rs 25,000 crore as part of its new manufacturing push.
With the Cabinet Committee on Security clearing the massive Rs 62,500 crore deal on Friday, HAL and the Ministry of Defence signed the agreement the same day for 156 LCHs for the Indian Army and Air Force. This move signals a major shift towards building a more robust and self-reliant defence industrial base, officials said.
“We are going to follow the Light Combat Aircraft manufacturing model in this programme as well,” defence officials told ANI. “The HAL would soon be issuing tenders for involving the private sector in a big way in the Light Combat Helicopter (LCH) project.”
HAL had earlier outsourced significant portions of its Light Combat Aircraft (LCA) project—components like fuselage and wings were built by firms such as Larsen & Toubro and Vem Technologies. A similar model is now being adopted for the LCH programme, with around 40% of the Rs 62,500 crore work expected to be outsourced to private firms.
Officials said the move is aimed not just at speeding up production but also at deepening the domestic defence ecosystem. The helicopters will be manufactured at HAL’s facilities in Bengaluru and Tumkur, Karnataka.
Defence Minister Rajnath Singh was recently present at the handover of the first rear fuselage for the LCA Mk1A, built by Alpha Tocol Engineering Services Pvt Ltd, a milestone that marks growing confidence in private industry’s capabilities.
HAL, India’s largest aerospace firm, currently holds an order book of over Rs 2 lakh crore, including orders for 83 LCA jets (10 of which are trainers) and 12 Su-30 fighter aircraft. The firm also expects fresh orders worth over Rs 70,000 crore in the near future.
With this mega outsourcing plan, HAL is betting big on the private sector to drive India's push towards defence self-reliance—and reduce foreign dependence for good.