BENGALURU: After months of negotiations, the Rs 46,898-crore order for 83 Light Combat Aircraft Tejas Mark-1A was signed on Wednesday. Defence PSU Hindustan Aeronautics Limited will now start producing the aircraft.
Defence minister Rajnath Singh said there are multiple friendly countries interested in Tejas and that there may be orders from them too.
HAL chairman and managing director R Madhavan said the PSU will start delivering the first batch of aircraft in 36 months. The PSU has nine years to complete the orders.
At present, the PSU has the capacity to manufacture eight LCAs per year, which it will now augment to 16 with a second dedicated plant in Doddanekundi which was inaugurated by Singh on Tuesday.
The order HAL has got is for 73 fighters and 10 trainers and the clearance for this was given by the Cabinet Committee on Security (CCS) in January. The Mark-1A will have 43 “improvements” over the Tejas Mark-1 jets which the IAF has already placed orders for earlier. There was no immediate confirmation on the investment that has gone into the second plant, or when it is likely to be commissioned fully.
“The first phase of operations will start in a few months after Tuesday’s inauguration and we’ll subsequently commission the rest of the plant,” a source said, adding that existing manpower will be used to operate the plant.
Lauding HAL’s efforts in indigenising the LCA, Singh said there are over 500 companies that have partnered with the PSU for the fighter, creating thousands of jobs.
HAL estimates the LCA programme has so far created at least 50,000 jobs — direct and indirect — and the new orders may generate 5,000 more in the initial phase.