Private Sector Gets Boost in Defence Industry

Defence Industry

New Delhi. In a major boost to Indian private defence industry, state-run Hindustan Aeronautics Limited (HAL) has outsourced works on the Light Combat Aircraft (LCA) Tejas Mark 1A to companies like Larsen and Toubro, Dynamatic Technologies and Alpha Designs clearly a sign that HAL will now be more of a systems integrator, with private companies playing a major role in the manufacturing of fighter aircraft and other aviation assets, including helicopters.

According to the plan, the wings for the next generation of the Tejas aircraft, orders for which are yet to be placed by the Indian Air Force (IAF), will now be manufactured by Larsen and Toubro (L&T).


The front fuselage of Mark 1A has been outsourced to Dynamatic Technologies, the middle section to VEM, and rear section to Alpha Design, sources in HAL said about their preparations for the project.

They said the government has been keen to engage private players in the project because an aerospace ecosystem needs to be built in India.


“Private industry is a part of the Indian defence industry, which is dominated by defence PSUs (public sector undertakings). Private industry has capacity and the capability,” Defence Ministry officials said adding that “What they needed was more orders and this collaborative approach is the way forward.”

HAL will act as a system integrator and will put together everything manufactured by them and the private players.

big bang

The IAF is expected to place an order for 83 Mark 1A aircraft soon.

The 83 Mark 1A aircraft will be in addition to the 40 Light Combat Aircrafts (LCAs) already ordered by the IAF in two batches, 20 each in the Initial Operational Clearance (IOC) configuration and the Final Operational Clearance (FOC) configuration.


Sources said HAL has already outsourced work on some of the last of the 40 aircraft being built by the state-run company.