Hindustan Aeronautics Limited

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This is a collection of articles archived for the excellence of their content.



Sandeep Unnithan , Aviation complex “India Today” 21/8/2017

A businessman with exceptional vision set up India's first aircraft-producing factory, Hindustan Aircraft, in 1940. Seth Walchand Hirachand, who had also set up India's first shipyard, Scindia Steam Navigation Company, and automobile plant, Premier Automobiles, was exceptionally prescient when he approached the kingdom of Mysore for seed capital for his startup. Hirachand was laying the building blocks for the soon-to-be independent country's industrial base. Today, Hindustan Aeronautics Ltd is India's only hub for the design, development and production of aircraft. Over the past 70 years, it has churned out 29 types of aircraft-from the MiG-21 to the Sukhoi Su-30MKI and the Tejas Light Combat Aircraft; Chetak, Cheetah and Dhruv helicopters; and transport aircraft for the security forces. An aerospace wing set up over two decades ago gave the Indian Space Research Organisation a leg-up in its space race by supplying key components for the Mars Orbiter mission and GSLV Mark III launch in 2014. It has created an entire aviation and high-technology industrial ecosystem by sourcing components from nearly 2,400 partners. HAL supplies high precision structural and composite work packages for Airbus A-320 and Boeing-777 aircraft. It has manufactured 4,060 aircraft and helicopters, 4,900 aero engines, and overhauled/ upgraded over 11,000 aircraft and 32,000 engines. Of late, it's transforming from a manufacturing to a technology firm by ploughing 10 per cent of profits into R&D and is set to produce over 1,000 helicopters and over 100 combat jets over the next decade to remain the mainstay of India's aerospace might.

Aeroplanes made by HAL

2019/ Dornier 228 1st India-Made Plane To Get European Agency’s Nod

August 31, 2019: The Times of India

HAL plane can now be used in Europe

Dornier 228 Is 1st India-Made Plane To Get European Agency’s Nod

The 19-seater Dornier 228 can now be used for commercial purposes in Europe
From: August 31, 2019: The Times of India

In a first, a madein-India plane can now be used for commercial regional flights in Europe. In 2017, the Directorate General of Civil Aviation (DGCA) had given ‘type certification’ for HALmade Dornier 228. Now European Union Aviation Safety Agency (EASA) has accepted DGCA’s certification.

“This is a big achievement for our Make in India programme,” DGCA chief Arun Kumar told TOI. “Happy to inform that HAL Civil Dornier 228 aircraft will have an Indian Type Certificate(TC). After an extensive interaction between DGCA & EASA at Cologne on 26 August 2019, EASA supported DGCA for issuance of TC,” DGCA tweeted. Dornier 228 was to be used by defence forces and regional connectivity service operators.

The 19-seater Dornier 228, made at HAL’s transport aircraft division in Kanpur, “is a highly versatile multi-purpose light transport aircraft. It has been developed specifically to meet the manifold requirements of utility and commuter transport, third level services and air-taxi operations, coast guard duties and maritime surveillance,” the HAL website says. The non-pressurised plane, which is capable of night flying, has maximum cruise speed of 428kmph and a range of 700km.

Financial performance

Briefly: from inception to 2018

Chethan Kumar, HAL paid over ₹9,000 crore to govt in dividends since 2003-04, January 9, 2019: The Times of India

The Hindustan Aeronautics Limited (HAL), awaiting payment of dues from the ministry of defence, has paid close to Rs 9,000 crore to the Centre in dividends between 2003-04 and 2017-18, with more than 50% paid in the past five years.

Of the Rs 8,996 crore paid as dividend, Rs 4,366 was collected by the Centre in 10 years between 2003-04 and 2012-13. In the next five years, Rs 4,630 was distributed as dividend.

For the first time in HAL’s over 75-year history, the company returned Rs 6,393 crore in two buybacks, both of which were done in the past three years. The first buyback of Rs 5,265 was in 2015-16 and the second was in 2017-18, when HAL paid Rs 1,128 crore.

“This was the first time the government did a buyback, and this most certainly affected HAL’s finances,” Suryadevara Chandrashekhar, general secretary, HAL Employees Association, and chief convenor of the All India HAL Trade Union Co-ordination Committee said.

In the five years between 2013-14 and 2017-18, HAL paid the Centre Rs 11,013 crore, which is more than double of what the defence PSU paid in the 10 years before 2013-14.

Suryadevara said the second buyback came at a time when HAL’s customers had stopped making payments and this strained the company’s cash in hand, forcing it to spend more than anticipated.

To date, HAL’s customers — Indian Air Force, Army and Navy — have not paid Rs 15,700 crore for products and services delivered to them. Of this, around Rs 14,500 crore needs to come from IAF, the PSU’s primary and largest consumer.

The PSU got an “Excellent” rating for three consecutive years between 2015-16 and 2017-18 from the ministry of heavy industries and public enterprises.

“Evaluation of the performance of Central Public Sector Enterprises (CPSEs) is done after the end of the financial year against targets fixed in respect of CPSEs which signs MoUs,” the ministry said.

Year-wise developments

2018: Orders dry up, staff idle, only helicopter Division Has Work

Chethan Kumar, Orders dry up, HAL staff could sit idle, October 20, 2018: The Times of India

Only Copter Division Has Some Work

Defence public sector unit Hindustan Aeronautics Ltd (HAL) is staring at a depleting order book and thousands of employees are worried at the prospect of sitting idle for months.

HAL has 29,035 employees, including 9,000 engineers, spread across nine locations — Bengaluru (Karnataka), Nashik (Maharashtra), Lucknow, Kanpur and Korwa (UP), Barrackpore (West Bengal), Hyderabad (Telangana), Kasargod (Kerala) and Koraput (Odisha). A new helicopter complex in Tumakuru (Karnataka) is under development and, upon its inauguration, some employees will be transferred there.

The aircraft division in Bengaluru, with around 3,000 employees, has no orders. With Jaguar and Mirage upgrade programmes, they’re hoping to be diverted to the LCA Tejas division, which has about 2,000 staffers. “We were hoping to bag the 108-plane deal (Rafale) but that’s ruled out now,” said a source in HAL.

HAL has to get orders for 83 additional Tejas, else these employees will be idle. While the Defence Acquisition Council has cleared procurement of 83 Tejas fighters, the actual order from IAF is yet to arrive. “A cost committee has been constituted but it’ll be months before it’s finalised. Until then, there’s no work,” another source said.

The Sukhoi Complex in Nashik, which has 5,000 employees, has orders for 17 months. Of 222 Su-30 MK-I aircraft, only the last batch of 23 is pending delivery. “We’ve consistently delivered 12 planes annually. After March 2020, there’s no work,” the source said.

HAL hoped to use the Nashik facility for the proposed joint venture with Russia, which envisaged a fifthgeneration fighter aircraft but it has not taken off. This will also reduce work at five other centres — three in UP and those in Hyderabad and Kasargod — which work on Su-30 subsystems. The only division with some business is the helicopter division, which is working on orders for 73 advanced light helicopters and awaiting orders for light combat helicopters.

The DAC has cleared procurement of 15 LCHs, but no orders have been placed. “The actual number must be 155 and 15 is the first batch. We’re hoping for more,” the source said. “We also have the light utility helicopter (LUH), which will soon get initial operational clearance. We expect orders there too. India needs over 1,000 choppers,” the source said.

2018-19: all-time high turnover of Rs 19,705cr

May 27, 2019: The Times of India

HAL records all-time high turnover of Rs 19,705 crore

NEW DELHI: State-run aerospace major Hindustan Aeronautics Limited (HAL) has posted an all-time high turnover of Rs 19,705 crore, registering a growth of 7.8 per cent in 2018-19, the company said in a statement.

HAL's Profit After Tax (PAT) for the fiscal year 2018-19 stood at Rs 2,282 crore, an increase of 14.8 per cent over Rs 1,987 crore in the corresponding previous year. An interim dividend of Rs 662 crore has already been paid by the company for the year 2018-19, it said. The news augurs well for the company as the aerospace major was earlier this year forced to borrow Rs 1,000 crore to pay salaries to its employees for the first time in years.

This also led to a political slugfest between the BJP and Congress with the latter alleging that the Centre denied HAL an off-set contract for 36 fighter jets.

"HAL expects fresh orders for Light Combat Aircraft and Light Combat Helicopters in the current financial year," the statement said.

The Order Book Position of the company as on March 31, 2019 was at Rs 58,000 crore.

"HAL (standalone) achieved an all-time high turnover of Rs 19,705 crore, registering a growth of 7.8 per cent for FY 2018-19 over the turnover of Rs 18,284 crore in the corresponding previous year. The audited results of the Company were approved by HAL's Board of Directors at its meeting," the statement added.

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