The government is preparing to increase the efficiency of government aerospace company Hindustan Aeronautics Limited (HAL) and to ensure timely supply to the armed forces. For this, the process of making roadmaps has started. The main center of discussion is to improve the current structure of the company. Options also include the idea of creating different units focused on different areas.
Appointment of external counseling group
According to sources, the government has appointed an external counseling group for this task, which has started reviewing the current functioning and structure of Hindustan Aeronautics Limited and is interacting with senior management. One of the main reasons for restructuring is the unusually large order book of Hindustan Aeronautics Limited, which is currently more than ₹ 2.7 lakh crore. This includes fighter aircraft, utility helicopters, attack helicopters and engines, while more orders are expected this year.
Are you ready to divide into three different units?
Earlier there was also a plan to reorganize Hindustan Aeronautics Limited, with the idea of dividing the company into three different units-focused on one fixed wing construction, second on helicopter construction and third maintenance, overhall and repair. However, at that time the company did not have such a big order book, so this scheme could not be implemented.
What is the pressure on the company?
Currently, the company’s order book is more than eight times its annual revenue. Due to this pressure, timely delivery is being concerned. Hindustan Aeronautics Limited is already lagging behind in the supply of light fighter jets (LCAs), on which the Air Force has expressed displeasure as its fighter fleet is continuously decreasing. Such a large order book has become another challenge for Hindustan Aeronautics Limited, as it questions the company’s ability to play an active role in the development of the next generation fighter aircraft, the Advanced Maltirol Combat Aircraft (AMCA) program.
