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Tuesday, June 9, 2009

Tata-Sikorsky Deal Ends HAL Aerospace Monopoly

The monopoly held by India's state–owned aeronautic manufacturer, Hindustan Aeronautics Ltd. (HAL), has been broken by the private firm Tata Advanced Systems Ltd. [TASL], which struck a joint venture with U.S.-based Sikorsky Aircraft to manufacture helicopters here.An executive of TASL said the helicopters will be built for both defense and civil purposes, and include utility and strike versions for the armed forces.Sikorsky is already in the race for India's program to procure 197 utility helos, along with AgustaWestland of the United Kingdom, Eurocopter of France , Kamov of Russia and Bell Helicopter of the United States.The joint venture between TASL and Sikorsky is being set up near the central Indian city of Hyderabad in an Aerospace Special Economic Zone. The joint venture will be built at a cost of $200 million and the plant will be commissioned in one year, added the TASL executive.Tata Group, which is the parent of TASL, already has an agreement with U.S. aerospace major Boeing to handle an initial $500 million of defense-related aerospace component work in India for export to Boeing.Last year, TASL announced that it is joining hands with EADS to bid for the Indian Army's $1 billion advanced tactical communications system project. TASL also signed a memorandum of understanding last year with Israel Aerospace Industries to set up a defense technology company in India to jointly produce a wide range of defense and aerospace products.

5 comments:

so what,it depend on whether india buys american helicopters or not for iaf

Yes it will still be indian decision

But such competition will put pressure on HAL as they will no longer be able to have delays and cost over runs in projects and be more competitive

to asian defnece

there have never been delay from HAL side or cost overrun

LCA project is of ADA not HAL

dhruv/hjt 36 project r from HAL

HAL is simply too big and trained personnel for tata to compete

Private companies have the advantage of quick decission making while HAL has to look at GOI before taking every step.
10 years ago HAL had proposed the Light observation helicopter(LOH). Logic dictated LOH development should have followed ALH. Even without military orders it was comercially viable since over half the international and domestic helicopter market is of this class.
GOI slept over it leading to import tender of 197 helicopters.
The problem with PSUs is that the rot starts from the top. All top level appointments are done by corrupt ministers since every PSU comes under some ministry. I know this because I work in a "Navratna". Even ministry babus treat our directors like dirt.

to anon June 9, 2009 10:05 PM

yes u r right

but again the decision to buy certain helicopter is still in govt hands and this will always take time

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