Defence Ministry signs Rs.13,500 crore deal with HAL for 12 Su-30MKI fighter jets to boost air power

HAL shares jump 2% as Defence Ministry signs deal for Su-30MKI aircraft

In a significant move to enhance India’s defence capabilities, the Ministry of Defence has placed an Rs.13,500 crore order for 12 Su-30MKI fighter jets with Hindustan Aeronautics Limited (HAL). This decision marks a major step towards the government’s Aatmanirbhar Bharat (self-reliant India) initiative, aimed at increasing the domestic production of defence equipment.

According to the Defence Ministry, these fighter jets will have an indigenous content of 62.6%, with many components to be manufactured by India’s defence industry, further boosting local capabilities. The aircraft will be produced at HAL’s Nasik division. This order is expected to significantly enhance the operational capacity of the Indian Air Force and strengthen the country’s defence preparedness.

The Sukhoi Su-30MKI is a multirole, twinjet, two-seater air superiority fighter developed by Russian manufacturer Sukhoi and produced under license by HAL for the Indian Air Force. A variant of the Sukhoi Su-30, the Su-30MKI is an all-weather, long-range fighter designed for air combat superiority.

This announcement follows Defence Minister Rajnath Singh‘s recent visit to Moscow, where he met with Russian President Vladimir Putin and other senior officials to bolster defence relations between India and Russia. In September, the Ministry of Defence also signed a Rs.26,000-crore contract with HAL for advanced engines for the Su-30MKI aircraft. These engines, set to be produced at HAL’s Koraput division, will ensure that the Su-30 fleet remains operational for the Indian Air Force.

The government’s push for increased domestic defence production is reflected in the rising order books of India’s defence manufacturers. Hindustan Aeronautics Limited (HAL) is poised for technological advancements, with plans for collaboration with the US on the production of advanced GE engines for military aircraft at HAL facilities.

India’s defence production has surged to an all-time high of Rs.1.27 lakh crore in FY 2023-24, marking a dramatic 174% increase from Rs.46,429 crore in 2014-15. This shift has reduced India’s reliance on foreign imports, with around 65% of defence equipment now being manufactured domestically, compared to 65-70% of imports in the past. This reflects the successful implementation of policies aimed at achieving self-reliance in defence production.

HAL shares jumped 2.3% to their intraday high of Rs.4,770 on the BSE after the Ministry of Defence (MoD) announced a Rs.13,500 crore contract with the company to procure 12 Su-30MKI fighter aircraft.

For all the latest updates, download PGurus App.

The post Defence Ministry signs Rs.13,500 crore deal with HAL for 12 Su-30MKI fighter jets to boost air power appeared first on PGurus.