The Hindu Business Line : ‘Scrapped Eurocopter bid makes no dent on HAL plans’

HAL’s Helicopter Division will have its hands full over the next five-six years as it would be working on 170 advanced light helicopters for the armed forces.

Madhumathi D.S.

Bangalore, Dec. 11 Hindustan Aeronautics Ltd does not see a setback to its own production plans after the Defence Ministry cancelled an Army bid to acquire 197 military helicopters from Eurocopter last week. HAL was to have licence-manufactured 137 of these helicopters.

In fact, HAL’s Helicopter Division will have its hands full over the next five-six years as it would be working on 170 advanced light helicopters for the armed forces, including an impending fresh order, according to HAL’s Chairman, Mr Ashok Baweja.

The ALH is HAL’s own star product. Called Dhruv, the five-tonne-class 14-seater comes in civil and military variants and is also exploring overseas markets. Mr Baweja said the MoD’s decision on its copters tender had no bearing on HAL or its copter division, either by work or revenue. “This [decision by the Union Government] does not really affect our growth or output. We have enough on work on the copter side, for both utility and weaponisation. We have set up divisions for composites, MRO (maintenance, repair, overhaul) and production and are adding to our capacity and people” to meet these tasks, he told Business Line. Orders for Sukhoi fighters and Hawk trainers should also be counted, he said.

Re-tender in 2008

For the HAL which posted a Rs 7,800-crore turnover in fiscal 2007 and ranks 34th in global 100 defence/aerospace companies; the helicopter business accounts for around Rs 1,000-1,200 crore. Dhruv apart, the public sector aircraft major has made the Cheetah/Chetak copters and is rejuvenating some of this ageing fleet into the retro-fitted Cheetal/Chetan for the military. It is currently working on a weapon-loaded ALH.

Had it not been cancelled, the 197-copter bid in favour of EADS group company Eurocopter and estimated at Rs 17,700 crore, would have seen actual production at HAL’s facilities only after three-four years, reckoning with the time for price negotiations and technology transfer. Sixty of the copters were to be bought outright. They are to replace the Cheetahs and Chetaks. In the race for the deal were Eurocopter’s AS 550 C3 Fennec and the US Textron-owned Bell Helicopters’ Bell 407.

The MoD has said it will re-tender the requisition by April 2008. “Whatever type of aircraft is selected is all right with us [for production]” said Mr Baweja, whose company has produced both the European copters and aircraft under licence, as well as taken up airframe contracts from Bell.