Policy paper on indigenisation for Hindustan Aeronautics Limited (HAL)

Abstract

Hindustan Aeronautics Limited (HAL) is engaged in design and development, manufacture and repair / overhaul (ROH) of military aircraft, helicopters, its engines and systems. Self reliance is a major corner stone on which the defence capability of any nation must rest. In order to attain a progressively higher level of self-reliance, HAL is making concerted efforts on Indigenous development of Aircraft, Helicopters, Aero Engines, Unmanned Aerial Vehicle (UAV) and indigenization of components, accessories and systems required for manufacturing as well as repair and overhaul of aircraft, engine and equipment. To ensure long term support, HAL has earmarked Indigenization as Key Thrust Area . The strategy for identifying the items for indigenization was adopted for components, Standard parts, spares and limited LRUs from the point of self-reliance, economy and obsolescence management. Ministry of Defence (MoD) has initiated several steps under the Make in India campaign and as one of the way Indigenisation of Defence Equipment is given main focus. Further, MoD has also directed all the DPSUs to bring down the import content progressively through Indigenisation and chalk out a road map to achieve this. Linked to Make In India Initiatives and HAL s objectives on Indigenisation on self-reliance, HAL is required to formulate an specific policy which provide guidelines for identifying the items for Indigenisation from Low value items to High value items (Systems, LRUs and Assemblies), arrangement and allotment of fund and to ensure the use of indigenous items after successful indigenization across its various platforms. Since the development process for indigenous products is technically complex, a lot of hand holding will be required from HAL side. There will be several situations where vendors would request for change in PO terms and conditions and waiver of LD etc. Some of the vendors may also require additional support of facilities, services and technical expertise. This will enable to attract and promote the domestic vendors to take part in Indigenisation activities.