New Delhi: In a significant development for India’s indigenous defence manufacturing ecosystem, Hindustan Aeronautics Limited (HAL) plans to outsource approximately ₹25,000 crore worth of work to private sector firms as part of its recently secured ₹62,500 crore deal for 156 Light Combat Helicopters (LCH).
This unprecedented level of private sector involvement represents approximately 40% of the total project value and signals a major shift in India’s approach to defence production and the practical implementation of the Aatmanirbhar Bharat (Self-Reliant India) initiative in the defence sector.
The Cabinet Committee on Security (CCS) approved the landmark ₹62,500-62,700 crore deal on March 28, 2025, marking the largest order ever received by HAL. Under this agreement, HAL will supply 156 indigenously designed and manufactured Light Combat Helicopters, with 90 units designated for the Indian Army and 66 for the Indian Air Force. The contract was signed on the same day between the Ministry of Defence and HAL, cementing this historic procurement.
These advanced combat helicopters, known as “Prachand,” will significantly enhance India’s defence capabilities, particularly in high-altitude warfare scenarios along the borders with China and Pakistan. The LCH “Prachand” holds the distinction of being the world’s only attack helicopter capable of taking off and landing at an altitude of 5,000 meters (16,400 feet), making it ideally suited for operations in challenging terrains like Siachen Glacier and Eastern Ladakh.
The manufacturing of these helicopters will be carried out at HAL’s facilities in Bengaluru and Tumkur, Karnataka. According to official statements, the supply of these helicopters will commence in the third year of the contract and will be spread over the subsequent five years. This phased production approach allows for better quality control and integration of private sector participants.
HAL has confirmed it will follow the Light Combat Aircraft (LCA) manufacturing model for this program, a strategy that has proven successful in enhancing private sector participation in defence production. Under this model, different sections of the aircraft such as fuselage, wings, and other components are manufactured by different private sector companies.
