BEL, Pilatus launch offset project

Project will enable BEL to manufacture electrical harnesses for the Pilatus global supply chain

Barely a week after media reports that the Hindustan Aeronautics Limited (HAL) has rejected a proposal of the IAF to produce Pilatus aircraft at its facilities, the Bharat Electronics Ltd and Pilatus Aircraft Ltd, Switzerland today announced the launch of an offset project to establish an electrical harness manufacturing capability at BEL’s Bangalore Complex.

The project would enable the BEL to manufacture electrical harnesses for the Pilatus’s global supply chain, the Bangalore-headquartered company said in a statement today. Pilatus Aircraft Ltd had entered into an agreement with the Government of India in 2012 for the supply of 75 PC-7 Mk-II turboprop basic trainer aircraft to the IAF.

This comes against the backdrop of a tussle between the IAF and HAL on whether India has to procure an imported trainer aircraft or develop one indigenously.

The contract, announced today, includes an integrated ground-based training system, a comprehensive logistics support package and a 30 per cent offset obligation. Pilatus has taken the offset obligation as a major opportunity to expand its footprint in India, it said.

The partnership between BEL and Pilatus dates back to 2010 when both the companies signed an MoU to collaborate on an offset-related basic trainer aircraft requirement for the IAF. It culminated in BEL and Pilatus concluding an agreement for the production of certain aircraft electrical cable looms in 2013.

The project includes transfer of technology in the form of tooling and jigs besides training of BEL’s personnel at Pilatus in Switzerland and India. The first phase of training in Switzerland was successfully completed in June 2013.

The training at BEL’s facilities in Bangalore is scheduled to be completed by this year end. Pilatus will continue to provide support as and when required until the capability is established at BEL, it was stated.Building on the synergy between the two companies, BEL and Pilatus are also reviewing additional potential offset project opportunities to be launched in the near future, the statement added.