India Secures Historic Defense Deal for 156 Indigenous Light Combat Helicopters
India's government has officially approved its largest defense contract to date, signing agreements for the production of 156 indigenous Light Combat Helicopters (LCH). Valued at approximately 62,000 crore rupees, this landmark deal with Hindustan Aeronautics Limited (HAL) marks a significant milestone in India's defense manufacturing capabilities.
Major Highlights of the Deal
The contracts outline the allocation of 90 helicopters to the Indian Army and 66 to the Indian Air Force. This is the first time India is manufacturing the LCH, known as 'Prand', which was inducted into the Indian Air Force in October 2022. Prand stands out as the only attack helicopter capable of operation at high altitudes, making it ideal for regions like the Siachen Glacier and Eastern Ladakh, where conditions can be challenging.
Equipped with both air-to-ground and air-to-surface missiles, the helicopters will also support network-centric operations, enhancing India's combat readiness. The production will take place at HAL's facilities in Bengaluru and other locations in Karnataka, with deliveries expected to commence in the third year of the contract and continue over a five-year period.
Economic Impact and Indigenous Manufacturing
This defense deal is not just a step towards bolstering military capabilities; it also aligns with India's 'Make in India' initiative aimed at promoting self-reliance in defense manufacturing. Approximately 65% to 70% of the components used in the LCH will be sourced domestically, emphasizing the government's commitment to indigenous production.
The deal is projected to involve over 250 domestic companies and is expected to create more than 8,500 direct and indirect jobs in the country. This job creation spans direct employment at HAL as well as indirect opportunities through supply chains and ancillary industries, making it a significant contributor to economic growth.
Conclusion
The approval of this massive defense deal underscores India's efforts to enhance its defense capabilities while simultaneously promoting local manufacturing and economic development. By investing in indigenous technology and production, India is taking crucial steps towards achieving greater self-sufficiency in defense and supporting its domestic industry.
As the LCHs begin to roll off the production line, the implications for India's military readiness and economic landscape will be closely watched, marking a pivotal moment in the nation's defense strategy.
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