Defence Ministry Inks Major Rs 2,312 Crore Contract with HAL for Dornier 228 Aircraft Production
In a significant boost to the Make-in-India initiative, the Defence Ministry on Thursday signed a substantial contract worth Rs 2,312 crore with defence public sector undertaking Hindustan Aeronautics Limited (HAL). The agreement is for the production of eight Dornier 228 aircraft specifically for the Indian Coast Guard, marking a crucial step in enhancing India's maritime security capabilities.
Contract Details and Strategic Importance
The contract was formally signed under the "buy (Indian) category" in the presence of Defence Secretary Rajesh Kumar Singh. This procurement method underscores the government's unwavering commitment to the Aatmanirbhar Bharat (self-reliant India) vision, aiming to reduce dependency on foreign defence imports and foster domestic manufacturing prowess.
This strategic move is designed to bolster India's maritime security architecture, providing the Coast Guard with advanced surveillance and patrol capabilities. The Dornier 228 aircraft are renowned for their versatility in maritime roles, including search and rescue, coastal patrol, and anti-smuggling operations.
Economic and Employment Impact
The Defence Ministry highlighted that this programme is expected to generate significant direct and indirect employment opportunities across the country. By strengthening HAL's production ecosystem, the contract will support a broad network of Micro, Small, and Medium Enterprises (MSMEs) and ancillary industries, creating a ripple effect in the defence manufacturing sector.
Furthermore, the initiative will establish sustained opportunities in areas such as:
- Maintenance, repair, and overhaul (MRO) services
- Life cycle technical support
- Skill development in aerospace engineering
HAL's Expanding Defence Portfolio and Financial Performance
HAL is currently engaged in a wide array of ambitious defence projects, managing a massive order book that includes:
- Production of 180+ Tejas Mk-1A fighter jets and development of Tejas Mk-II
- Development and production of the Light Combat Helicopter (LCH), with 156 additional units of the Prachand variant ordered
- Development of the Indian Multi-Role Helicopter (IMRH), Light Utility Helicopter (LUH), and Dhruv Advanced Light Helicopter (ALH)
- Production of 70 HTT-40 basic trainer aircraft
- Licenced production of Su-30MKI engines and MiG-29 upgrades
In a related development, HAL reported a strong financial performance for the December quarter of the current financial year. The defence PSU posted a 29.6% year-on-year rise in its consolidated net profit, with profit after tax reaching Rs 1,866.7 crore, compared to Rs 1,439.8 crore in the same period last financial year (Q3 FY25), according to an exchange filing.
This financial growth underscores HAL's robust operational capabilities and its pivotal role in India's defence manufacturing landscape, further reinforced by the new Dornier 228 contract.
