Hindustan Aeronautics Ltd. has revised the value of its contract to provide 20 light combat aircrafts of the Mark 1 variant to the Indian Air Force, according to an exchange filing on Thursday.
The value of the contract, which was signed on Dec. 23, 2010, was revised from Rs 5,989.4 crore to Rs. 6,542.2 crore. HAL credited this change to a revision in their delivery schedule.
The defence equipment manufacturing company also signed another contract for the supply of 20 Mk1 LCAs for initial operational clearance on March 31, 2006, for Rs 2,701.7 crore. This amount was revised to Rs 2,812.9 crore.
In 2018, HAL sought an amendment in the contract to further revise this value to Rs 5,362.2 crore due to change order on account of "changes in build standards for Integration entailing procurement of additional line replaceable units, raw materials, composite materials, bought out items and consumables, tooling etc," according to a PIB press release.
The Indian Air Force had received nine of the 20 aircrafts as of 2018 as per the IOC contract.
Advanced Fighter Jet Engine Deal
HAL also received its first delivery of an advanced jet engine from US defence company GE Aerospace on March 26 which will be used in its Tejas fighter jets.
The deal was inked in 2021 for the value of Rs 5,400 crore. The F404-IN20 engine from GE Aerospace will be used in HAL's single-engine Tejas Light Combat Aircraft Mk-1A jets. The engine was selected in 2004.
GE Aerospace was contracted to supply 99 engines to HAL but had its deliveries delayed.
The company had secured an order in February 2021 to supply 83 Tejas Mk-1A aircraft valued at Rs 46,900 crore. The initial plan was for the aircraft to begin rolling out in 2023. However, the schedule was postponed due to delays in engine supply and production setup.
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