Pratt & Whitney to source aircraft engine components from India for global ops

Offset rule stipulates that in any defence contract valued at over Rs 300 crore with a foreign company, 30% of the contract value has to be ploughed back into India

Sharmistha Mukherjee New Delhi
Last Updated : May 21 2013 | 7:13 PM IST
In what is indicative of growing relevance of Indian technological expertise, US-based aerospace engine manufacturer Pratt & Whitney is exploring opportunities to source components for its global operations from India.

Palash Roy Chowdhury, country manager (India), Pratt & Whitney, said, “We are in talks with several suppliers to source parts for aircraft engines from India for our global operations. Aerospace technology in India has mostly been isolated in public sector undertakings but with the offset rule coming into place a lot of private sector entities are investing in bandwidth in terms of developing talent as well as technological resources.”

The offset rule stipulates that in any defence contract valued at over Rs 300 crore with a foreign company, 30% of the contract value has to be ploughed back into India.

Most of it is accounted for as direct offsets like sourcing of equipment, software etc for the contract. Lately, all major corporate houses including Tata Motors, Ashok Leyland, Mahindra & Mahindra have started investing in developing capability in defence technology.

Roy Chowdhury added that while initially P&W may look at sourcing basic components for aircraft engines from India, there is potential to scale up operations in future.

P&W is additionally mulling setting up a maintenance, repair and overhaul unit (MRO) in the country.

“We have contracts to supply engines for A320neo to IndiGo and GoAir starting 2015. We want to develop an ecosystem for servicing our customers within the country. But the lack of single-window clearances, operational challenges in securing land with airside access, high tariff structures is not conducive for justifiable business currently. We are working closely with industry bodies and the government to ease such hurdles”, informed Roy Chowdhury.

Till then, P&W is setting up a training centre for aviation personnel in India – the second such facility outside the United States apart from China. The company aims at providing technical expertise to professionals in the aviation industry in and around India from the centre to become operational in the first quarter of 2014.

A unit of United Technologies Corporation, Pratt & Whitney is one of the world’s oldest and largest commercial aircraft and power system manufacturers. The company has delivered more than 5,00,000 aircraft engines to more than 11,000 customers since its inception in 1925.

P&W offers a range of commercial, military and general aviation engines, as well as solid fuel propulsion systems and power systems. The company’s engines are found in more than 30% of all commercial aircraft. Over 16,000 such aircrafts are in service currently.

P&W is a major partner in two international large commercial engine joint ventures – International Aero Engines (along with Rolls Royce, MTU Aero Engines and Japanese Aero Engines) and Engine Alliance (50:50 joint venture with General Electric). The company manufactures or collaborates on six major commercial aircraft engines and four military engines.
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First Published: May 21 2013 | 7:08 PM IST

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