'HAL divisions need autonomy'

Sometime in the 1970s, there was a proposal to make the transport aircraft division of Hindustan Aeronautics Ltd (HAL) autonomous. Then, a conceptual design for a 50-seater aircraft had been made to be manufactured at HAL. But, the Centre shot down the proposal, saying HAL should manufacture only military aircraft.

Then the Tatas had offered to manufacture it, but that was shot down too. Yet, the proposals for HAL to diversify was being made time and again. The proposal by the Centre to divest 10 per cent in HAL recently seems to be a start. “But, that’s too small a stake to be divested to attract foreign investors,” said C G Krishnadas Nair, former chairman, HAL.

Each of the division should have a board or a subsidiary so that decisions may be made independently, Nair added. This will help accelerate HAL’s growth and it can grow big, he said. To benefit from the offset policy, HAL will need a dedicated division to attract JV partners. The possible divestment of the transport aircraft division of HAL at Kanpur is being mooted by many an expert from the aviation sector.

If HAL or a division can be made a public limited company with HAL continuing to have a controlling stake, that too would benefit the company and attract investors, said Commodore J Varkey, honorary secretary, Society of Indian Aerospace Technologies and Industries (SIATI). SIATI has over 300 companies among its members.

The SIATI in association with HAL and other aviation organisations will be celebrating hundred years of Indian civil aviation in Bangalore. Many an Indian company in the aerospace sector may face difficulties when trying to export because of the lack of certification recognised by the FAA or the Federal Aviation Authority which does not allow Indian companies in the aerospace sector to benefit from exports. Indian companies may have only the DGCA certification.

Hence, the SIATI has been trying to influence foreign agencies like the FAA, Joint Aviation Authorities of Europe or the JAA, JAR of Japan or the BS certification of Britain to recognise the DGCA certification so that Indian aerospace firms can export without any problems.