HAL plans Rs 20,000-cr modernisation drive

Defence major Hindustan Aeronautics Ltd has announced a Rs 20,000-crore plan for modernising its plants and hinted at the possibility of the company going public and being listed in the stock market.

The HAL Director (Finance), Mr D. Shivamurthi, said the company plans to spend Rs 20,000 crore for modernising its facilities over the next ten years which would be funded through internal accruals.

The Bangalore-headquartered company already has reserves worth Rs 9,000 crore and proposed to add Rs 1,500 crore every year, he told reporters here on the sidelines of 'Aero India 2011'.

According to company officials, HAL has 19 production divisions and ten R&D centres in the country. Mr Shivamurti said the company plans to design, develop and manufacture 1,500 helicopters over the next ten years.

The company has Rs one lakh crore worth of orders to be delivered over the next ten years, the officials said.

Mr Shivamurthi indicated that HAL is keen to go public and be listed on the stock exchanges but added that no final decision has been taken.

He declined to talk about the extent of disinvestment and said the final call would be taken by the Government.

He said the issue of disinvestment is being discussed internally and the proposal has not gone to the board for approval.

The company officials noted that Bharat Electronics Ltd and BEML Ltd, which are also under the Ministry of Defence like HAL, are already listed.

They also said that the naval version of the Light Combat Aircraft Tejas is expected to make its maiden flight in eight weeks.

Mr Shivamurti also said: "Our (HAL's) turnover last year was Rs 11,500 crore; this year (2010-11) it's likely to be Rs 12,600 crore.''