Will delay in projects end HAL’s monopoly?

Discussion in 'Defence & Strategic Issues' started by AVERAGE INDIAN, Nov 20, 2013.

  1. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    Heavy industries minister Praful Patel is on an offensive against the ministry of defence's move to rope in private players to lead the supply of transport aircraft to the Indian armed forces, report CNBC-TV18's Rituparna Bhuyan and Elan Dutta. Sources say, Patel is batting for Hindustan Aeronautics Limited or HAL to be given primacy for the contract but singed by enormous delays, the armed forces are pushing to end HAL's monopoly. In the first of this special series, we find out if the armed forces apprehensions hold water. One of India's navratna companies, Bangalore based HAL has had a virtual monopoly in India's air defence contract market. While HAL has helped boost India's indigenous capabilities, its delivery record has been marred by significant time and cost over runs prompting the armed forces to push for the entry of private players as the lead contractors, a move that is now being questioned by the nodal ministry and HAL. However an analysis of HAL's past throws up an uncomfortable truth.

    In 2008, HAL secured its first export order through a competitive bidding for supply of seven advance light helicopters, or Dhruv, to the Ecuadorian air force. Three years later, the Latin American nation slapped a penalty of Rs 6.16 crore on the navratna company as it overshot the delivery deadline. Even for an existing platform like the Dhruv, Hindustan Aeronautics could not crank up its production lines to ensure timely delivery. In fact, some of HAL's projects have seen delays as long as 10 years. For instance the much promised intermediate jet trainer, Christened Sitara, a project that was conceived in 1999 and supposed to be completed by 2004. More than a decade later, the intermediate jet trainer is still a pipe dream, even though the ministry of defence released Rs 3000 crore for the project.

    HAL was also given responsibility of developing 106 basic trainers by the air force in 2010. As on date, HAL has not even been able to finalise the design while the engine for the trainer is yet to be selected. Meanwhile HAL has revised the DPR thrice, prompting Indian Air Force chief NAK Browne to shoot a missive to Antony in July this year. Another project that has seen in-ordinate delay is the light utility helicopter that was supposed to replace the ageing fleet of Chetak's and Cheetahs. Even after a decade's delay, HAL has failed to deliver the promised Shakti series of engines for the advanced light helicopter Dhruv. This raises the question that Praful Patel's opposition to private players is coming at the cost of India's national security. It is time for the government to pay heed to RBI governor Raghuram Rajan's advice of not molly coddling Indian companies at the cost of the country and consumer.

    Read more at: Will delay in projects end HAL's monopoly? - Moneycontrol.com
     
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  3. Dash

    Dash New Member

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    This will come to and in this decade where more public private pariticipation an govt is also encouraging this..
     
  4. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Depends on how well the air force manages to manufacture jets and trainers. Private industry is second rung, they will take 20 or 30 years to get to HAL's level.
     
  5. kseeker

    kseeker Retired

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    HAL has become a heaven for lethargic people who enjoy free salary and facilities provided by the company; according to one of my friend who has recently joined there.

    He says, if there were delays in project execution, it's because of the lethargy. Everyone acts like a boss and issues orders however, no one is ready to work their ass off.

    Due to bad or no maintenance of the MIGs, HAL has equally contributed in the death of the pilots along with the the Jets age and GOI.
     
  6. no smoking

    no smoking Senior Member Senior Member

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    You have to be realistic: as a young aviation manufacturer, they are still on the learning curve. The major problem is they lack almost everything, from experienced engineers, research equipments to budget. As long as you want to develop a fighter by your own people, you have to tolerate any delay and crap they produce.

    So, even if you got money to build another competitor, all you will get is another group of unexperienced indian scientists making the same mistakes as HAL.
     
  7. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    The only solution is that, GOI should give separate funds to HAL & other Indian defense companies to try and build concepts first as is done in most nations who make their own systems.

    Frustrating that we have been having the same debate over decades. On one hand everyone accepts the importance of home grown technology, but the military should not be asked to wait till Indian Defense PSUs catch up on the technology curve with the rest of the world. That will be building our Defense PSUs at the cost of military! Certainly not recommended.

    HAL needs to be professionally competent and manufacture aircrafts instead of just surviving by licence production and assembling knockdown kits. Let it compete against other aircraft manufacturers and if its aircraft are good, then it will get its due
     
  8. abingdonboy

    abingdonboy Senior Member Senior Member

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    HAL's monopoly is ALREADY being undermined so looking ahead there's NO WAY the current state of affairs will be allowed to go on. Across the board the Govt is adopting PPP models and having a lot of success all while pvt giants like TATA and, L&T Mahindra are getting in the defence game in a BIG way. Just look at the recent moves by the GoI on clearing JVs and the 2013 DPP.
     

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