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HAL to invest in MMRCA production facilities
Hindustan Aeronautics Ltd. (HAL) will invest Rs six billion ($108.3 million) in two Bengaluru factories for fighter aircraft and engines.
The factories will be located at Chellaghatta, which is adjacent to HAL's other production facilities in Bengaluru, said HAL in a statement.
Indian media reports said one of the factories will produce airframes for the medium multi-role combat aircraft (MMRCA) that India plans to acquire. The other factory will produce MMRCA power plants.
The Indian government is in negotiations with France's Dassault for its Rafale fighter, which earlier this year attained so-called "L1-vendor" status in the competition.
L1 signifies that Dassault was the lowest bidder in the 126 aircraft requirement, allowing it to conduct exclusive negotiations with India's Contract Negotiation Committee for the fighter deal.
A CNC is comprised of a defence programme's key stakeholders, and in the case of MMRCA is likely to include organisations such as the air force and HAL.
Under the terms of the MMRCA programme, 18 aircraft will be provided in a flyaway condition, with the subsequent 108 produced locally by HAL in India. India could eventually obtain up to 200 MMRCA aircraft.
HAL said that the two new facilities will provide direct employment for 1,200 and indirect employment for 3,600.
New Delhi sees the MMRCA programme as a crucial step in the country's efforts to further develop an advanced aerospace sector. In addition, when inducted the MMRCA will likely be the most potent and advanced aircraft in India's arsenal.
Analysts have estimated the value of the MMRCA contest as ranging between $10 billion and $20 billion. The Rafale's original rivals for the requirement were the Boeing F/A-18E/F Super Hornet, Eurofighter Typhoon, Lockheed Martin F-16IN Super Viper, RSK MiG-35 and Saab Gripen NG. All but the Rafale and Typhoon were eliminated in April 2011.
The defence ministry source says India will begin phasing out its MiG-21s from 2014. While popular among experienced pilots, the MiG-21s in air force service have suffered from obsolescence problems as well as a number of fatal accidents in recent years.
HAL to invest in MMRCA production facilities
