HAL, L&T bag contracts from Ministry of Defence

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Capital Market
Last Updated : Mar 08 2023 | 4:31 PM IST

The Ministry of Defence on Tuesday signed two separate contracts with Hindustan Aeronautics and Larsen & Toubro for procurement of 70 HTT-40 basic trainer aircraft and three cadet training ships, respectively, aggregating to Rs 9,900 crore.

The Union Cabinet on 1 March 2023 approved the procurement of 70 Hindustan Turbo Trainer-40 (HTT-40) trainer aircraft from Hindustan Aeronautics (HAL) at a cost of over Rs 6,800 crore. The aircraft will be supplied over a period of six years.

The HTT-40 is a turbo prop aircraft possessing good low speed handling qualities and provides better training effectiveness. This fully aerobatic tandem seat turbo trainer has an air-conditioned cockpit, modem avionics, hot re-fueling, running change over and zero-zero ejection seats.

The aircraft will meet the shortage of basic trainer aircraft of Indian Air Force for training of newlyinducted pilots. The procurement will include associated equipment and training aids including simulators. Being an indigenous solution, the aircraft is configurable for upgrades to incorporate the futuristic requirements of the Indian Armed Forces.

The HTT-40 contains approximately 56% indigenous content which will progressively increase to over 60% through indigenisation of major components and subsystems.

Further, the Cabinet had also cleared signing of contract with Larsen & Toubro (L&T) for acquisition of three cadet training ships from L&T, worth more than Rs 3,100 crore under Buy {Indian-IDDM (indigenously designed, developed and manufactured)} category.

The cadet training ships will cater the training of officer cadets, including women, at sea after the basic training to meet the future requirements of the Indian Navy. The ships can also be deployed for evacuation of people from distress areas, Search & Rescue and Humanitarian Assistance and Disaster 2 of2 Relief (HADR) operations. The delivery of ships is scheduled to commence from 2026.

The ships will be indigenously designed, developed and constructed at L&T shipyard in Kattupalli, Chennai. The project will generate an employment of 22.5 lakh man-days over a period of four-and-half years. This will encourage active participation of Indian shipbuilding and associated industries, including MSMEs.

Shares of Hindustan Aeronautics jumped 5.77% to Rs 2,866.40 while Larsen & Toubro rose 1.34% to Rs 2,169.35 on the BSE.

HAL is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. As of 31 December 2022, the Government of India held 75.15% stake in the company.

Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.

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First Published: Mar 08 2023 | 3:13 PM IST

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