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26 February 1998

HAL in ti-up talks with companies for aircraft production

PREMA VISWANATHAN  
SINGAPORE, FEB 25: In a bid to exploit the potential for growth in civil aviation, both domestic and global, Hindustan Aeronautics Ltd is conducting negotiations with major aerospace companies for co-production of 50 seater and 100 seater aircraft, HAL chairman C G Krishnadas Nair, said here today.

The talks ``which are still at a preliminary stage'' are in tandem with the company's new policy of moving away from licensed production and toward civil aeronautics, which offers prospects of greater commercial spinoffs, the HAL Chairman said.

This strategy of ``global partnerships'' in civil aviation, and upgrade of military aircraft like the MiG-21, which would tap India's technical and research expertise, would help him achieve his target of increasing the company's turnover to Rs 40 billion in the next 4 years, up from last year's Rs.17.7 billion. The public sector company also hopes to notch Rs 36 crore in exports in the coming year.

Among the products that is expected to find a good global market isthe $5 million advanced light helicopter (ALH), which is awaiting certification in a couple of months, having already been tested at high altitudes and at sea level, and subjected to various climate tests.

Also being showcased is an intermediary jet trainer - ``something that is sorely needed now that Kiran, the backbone of jet aircraft training, is nearing the end of its fatigue life and has to be phased out in 4-5 years,''as Nair pointed out.

There was also a plan to modify the Chetak helicopter into a low cost anti-insurgency helicopter, which could be an effective weapon for the coastguard, the Border Security Force etc, he said.

However, it was the civil aviation sector that would mark HAL's turnaround, he seemed to suggest. ``The real potential in air traffic will come from new city pairs, and feeder lines to smaller cities necessitated by economic activity and tourism,'' he said.

Nair, who is in the city state as leader of an HAL delegation participating in the Asian Aerospace 98, said thatwhile continuing to cater to the needs of the Indian Air Force, the company would increasingly move away from licensed production and seek to use its expertise in R&D and design to enhance its export potential through global partnerships.

``We are also encouraging the private sector to forge global alliances. Thanks to our low manpower cost, we are in a position to be cost-competitive in the world civil aviation market,'' explained Nair. India's own aerospace show, Aero India 98, to be held in Bangalore from December 2-5, would help showcase the country's R& D and design strength as also its product range, he added.

HAL already has two existing joint ventures, HAL-BAe software Ltd. and Indo Russian Aviation Ltd (IRAL), which encompasses a wide range of activities, from spare parts manufacture to marketing.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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