🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Nashik emerges as major hub for India's aircraft production

EditorAmbhini Aishwarya
Published 10/17/2023, 05:05 AM
© Reuters.
HIAE
-

The city of Nashik, traditionally recognized for its wine production, is now transitioning into a significant center for aircraft manufacturing in India. State-owned Hindustan Aeronautics Limited (HAL) is setting up new production lines for the indigenous light combat aircraft (LCA) Mk-1A and Hindustan Turbo Trainer-40 (HTT-40) planes to meet the growing demands of the Indian Air Force (IAF).

The new production lines will expedite the delivery of the 83 fighters ordered by IAF for ₹48,000 crore in February 2021, reducing the delivery time by at least a year. This follows an announcement from IAF chief Air Chief Marshal VR Chaudhari about plans to order an additional 97 LCA Mk-1As at an estimated cost of ₹67,000 crore (INR100 crore = approx. USD12 million).

Currently, HAL can manufacture 16 LCA Mk-1As annually in Bengaluru. The Nashik line will increase this capacity to 24 jets per year. The first Mk-1A is expected to be delivered to the IAF in February 2024, with the final jet from the batch of 83 due by 2028.

On Tuesday, HAL delivered the first trainer version of LCA Mk-1 to Chaudhari in Bengaluru as part of an earlier order for 40 Mk-1 jets. The IAF has already inducted 32 single-seater jets and established two LCA squadrons. Seven more twin-seater aircraft are expected to be delivered by March 2024.

The LCA project, initiated in 1983 as a replacement for the Soviet-origin MiG-21 fighter fleet, will see its existing Mk-1 and Mk-1A variants replace IAF’s MiG-21 fighters. The Mk-2 variant is being planned as a replacement for IAF’s retiring MiG-29s, Mirage-2000s, and Jaguar fighters.

In addition to the LCA production, HAL has been awarded a ₹6,838-crore contract by the defense ministry in March for 70 HTT-40 planes. Production of these basic trainers is set to begin in Nashik in 2025-26, according to DK Sunil, director (engineering and R&D), HAL. A repeat order for an additional 35 HTT-40s is likely.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.