Hindustan Aeronautics Limited (HAL) has completed the delivery of an Advanced Light Helicopter (ALH) Mk-III and other deliverables to Mauritius as part of a ₹141 crore defence deal.
The contract between the governments of India and Mauritius was signed in January last year and the deliveries were to be made within 18 months. However, state-owned defence manufacturer HAL delivered the equipment before the set deadline, the government told parliament.
In a written reply in the Rajya Sabha, minister of state for defence Ajay Bhatt on Monday said that HAL possesses the necessary infrastructure and skilled manpower in its Bengaluru facility and has a well-established ecosystem to complete export orders within a specified timeframe.
Additionally, HAL has expanded its infrastructure by inaugurating a new facility, the HAL helicopter factory in Tumkur, Karnataka.
To promote domestically manufactured defence products, including those from HAL, lines of credit/fundings are being encouraged based on strategic considerations, he informed parliamentarians.
The Central government also grants indigenously produced platforms/systems to friendly foreign countries (FFCs), which includes those from HAL.
Defence attaches posted in Indian embassies overseas have been assigned the responsibility of supporting Indian defence companies, including HAL, in the execution of their defence contracts. They are also given financial assistance to promote indigenous defence platforms.
On March 10, the defence ministry awarded HAL a contract worth ₹667 crores to supply six Domier-228 aircraft for the Indian Air Force (IAF). As a result, HAL’s stock rose by 2 per cent on March 13.
HAL has currently an order book position of ₹84,000 crores, and another ₹50,000 crores worth of orders are in the pipeline.
According to market analysts, the outlook for HAL and other defence equipment manufacturers remains positive due to government initiatives such as Atmanirbhar Bharat and geopolitical tensions.
HAL’s stock has surged more than 400 per cent over the past three years and has given over 100 per cent returns in the past year.