Helicopters Production In India Rather Than Import

Kunal Biswas

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HELICOPTERS: CONSOLIDATION APPROACH NEEDED FOR PRODUCTION IN INDIA RATHER THAN IMPORT


Our defence requirement in Aero platforms necessitates increasing indigenous production rather than import.
Indian defence forces presently have a fleet of over 650 helicopters, approximately 300 with the Indian Air Force (IAF), 180 with the Indian Army (IA) and another 150 with the Indian Navy (IN) including Indian Coast Guard. The Alouette and Lama helicopters, called Chetak or Cheetah have been the prime machines ever since the 1960s and have already been through few upgradations. Nearly 78 percent of them are light or medium lift and include the Cheetah, Chetak & Mi series and are slated for replacement.

Current Inventory & Procurement Programme of Helicopters

Indian Air Force: The current helicopter fleet inventory of the IAF is estimated to have nearly 300 aircraft, the bulk of which are the 150+ Mi-8/Mi-17 family with another 80 Mi-17V5s to supplant the ageing Mi-8s. 75 Chetak/Cheetah and about 30 Mi25/35 attack helicopters serve with various units. The IAF retains four heavy lift Mi-26 helicopters which are used sparingly as sky cranes for special missions. The procurement programme of IAF is given in the following points.

  1. Mi-17 V-5 --- 80 ---- $ 1.34 Billion (Rs 4800 crores) ------ Deliveries have been completed.
  2. Mi-17 V-5 --- 59+12* ---- $1.9 Billion (Rs 7600 crores) ----- First batch of 19 Mi-17 V-5 has been delivered. The remaining 40 helicopters to be supplied by the end of 2015. * 12 for Ministry of Home Affairs
  3. Indigenous ALH Dhruv ---- 204 — Delivery ongoing from HAL
  4. Attack Helicopters ---- 22 ---- $1.4 Billion (Rs 5600 crores) ------ Apache AH 64D in lead; Option for 22 more
  5. Heavy-Lift Helicopters ---- 15 ---- $650 Million (Rs 2600 crores) ------ Boeing's Chinook has been selected over Russia's Mi 26T2
  6. Light Utility Helicopters ----- 64 ---- $750 Million* (Rs 3000 crores) ----- Eurocopter Fennec 555 and Russia's Kamov 226 contenders.cost includes 133 for Army
  7. Indigenous Light Utility Helicopters ----- 61 ----- $ 83.2 Million* (Rs 376 crores) ------ *cost includes 126 for Army. HAL delivery 2017 onwards
  8. VVIP Helicopters ------ 12 ------ $900 Million (Rs 3600 crores) ---- Three of the 12 helicopters have already been delivered. Deliveries of others stalled owing to deal being cancelled
  9. Light Combat Helicopter ------- 65 -------- $1.4 billion (Rs 5600 crores) ----- To be made by HAL 2014-2015
  10. Weaponised utility helicopter ------- 76 — By HAL by 2013, 100+ by 2019

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===============

Indian Army: The Army Aviation Corps (AAC) currently flies 180 helicopters consisting of 100 HAL Chetaks (Alouette II) and 50 HAL Cheetahs (Alouette III). The newest Cheetah airframes are currently in the process of being upgraded / overhauled to the HAL Lancer configuration. The HAL Dhruv will initially replace the Chetak fleet, which was originally obtained second hand from the Indian Air Force. The procurement programme of IA is as given in the following points.

  1. Light Combat Helicopters --------- 114 ------- $94 Million, Rs 376 Crores (Development & Designing Cost)
  2. Light Utility Helicopter ---- Total – 384, Indigenous – 187 (126 for Army and 61 for IAF) $750 Million,
  3. Dhruv ALH ------- 105 — 2015 ------ To be fitted with newly developed Shakti engine

===============
===============

Indian Navy: The Navy has approximately 150 helicopters, both operating from shore bases and on-board warships including the aircraft carrier INS Viraat which embarks a complement of Sea Harriers and Kamov Ka-31s, Sea King and Chetak helicopters. The current fleet also includes several helicopters including the British Sea Kings, Russian Kamov, indigenous Dhruv Advanced Light Helicopters, and the Chetaks. The Kamov Ka-31s provide AEW support for the fleet. In the anti-submarine warfare role, the Sea King Mk 42A/B and Kamov Ka-25/28 are used. The Navy is looking at inducting state-of-the-art helicopters with latest standards, variants and weapons. The MRH (Multirole helicopter), NUH (Naval Utility Helicopter) are some of these. Procurement programme of Navy is as given in the following points.

  1. Multi – Role Helicopter ----- 16 + 44 follow-on order ------- $ 1 billion -------- American S-70 Bravo and European NH-90 remain in the fray.CCS clearance awaited
  2. Multi – Role Helicopter ------ 75 -------- $ 4 billions ----- RFI issued in Jun 2011. RFP to be issued soon. Navy requires two variants for Special Ops & for ASW to replace Sea Kings.
  3. Naval Light Utility Helicopters ----- 56 --- $1.75 billion (Rs 8750 Crores) ----- RFP issued. Likely Contenders:
  4. Kamov Ka -31 ----- 5 $195-200 Million (Rs 1000 crores) ------ Approved by Government. Deal yet to be signed

===============
===============

Indian Coast Guard (ICG): At present the ICG has an inventory of 17 Chetak helicopters and 3 ALHs all supplied by HAL. Two RFIs have been issued in 2010 by the ICG's Directorate of Aircraft Acquisition covering planned purchase of 30 helicopters (16 ship based and 14 shore based). However, the tender for procurement of 16 ship based helicopters was cancelled and the fresh tender is most likely to be issued this year. The ICG has plans for an eventual fleet of 36 light observation helicopters and 12 rescue helicopters. The service is expected to achieve an effective strength of about 60 helicopters by 2018, which is clearly indicative of the emergence of a new, modern and far more capable Coast Guard.

Civil/ Commercial: The civilian segment presently has over 300 rotor wing helicopters and in the next five to ten years will require over 400 helicopters for commercial use. Fleet strength and no. of Operators in India is as per the list.

  1. Private Category ----- 17 ------ 27
  2. Commercial Operators ------- 64 ------- 228
  3. Govts. /Semi-Govt. -------- 17 ---------- 29
  4. Total ------ 98 ---------- 284 Turbine Helicopters

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===============


Indigenous Programme
India also has a strong indigenous helicopter programme being led by Hindustan Aeronautics Ltd (HAL). HAL is a multi-billion defence public sector unit which specializes in manufacture and assembly of aircrafts, helicopters, engines & aero composites. The HAL Helicopter Division has produced 336 Chetak and 246 Cheetah Helicopters so far and overhauled more than 200 helicopters of both the types. It has also undertaken the Cat 'B' repairs of more than 75 helicopters and put them back into operation. Among the current programs underway at HAL are the development and production of the Advanced Light Helicopter (ALH) Dhruv, which has various variants of it to fulfill conceived roles by the armed and civil services. The development and production of the first indigenous Light Combat Aircraft (LCA) Mk I and II, christened as Tejas is under way. However, in the defence sector most of the requirements are currently being made by procuring the helicopters from foreign countries either directly or through transfer of technology. Firm orders received from defence forces are as per list.

  1. ALH Dhruv ------- 204 ------- Delivery began with higher powered Shakti engine to the Indian Army and IAF last year. Further batches will be delivered this year. HAL has firm orders for 159 and sees a requirement for a minimum of 80 more.
  2. Light Utility Helicopter ------ 187------- IOC is likely around 2017.
  3. Light Combat Helicopter ----- 179 ------ Prototype stage
  4. Weaponised utility Helicopter ---- 76 ------- 2019-22

HAL will need to make massive investments for its helicopter division, to have the required infrastructure ready in time for the LUH, LCH and IMRH production. By the year 2015, HAL plans on having three helicopter manufacturing plants with one in Bangalore and the other two outside. Bangalore will be the centre of R&D for helicopters and for manufacturing of 5.5 to 6.0 tonne helicopters. 3.0 tonne and 12.0 tonne will move out to another location for manufacture. The defence forces fleet needs replacement and new acquisition in the very near future, which HAL is unlikely to fulfill and given the past history of delays and resource diversification of HAL in FGFA, MTA and various other projects it may have to go to the international market for procurement of light utility helicopters, Attack and Heavy Lift.


===============
===============


Indian Aerospace Companies & Partnerships

Tata Group – In 2012, Tata Sons and Agusta Westland formed a joint venture company for manufacturing AW119Ke light helicopters in India. In 2010, Tata Advanced Systems Ltd formed a joint venture for manufacture of the Sikorsky S-92 helicopters in India for the domestic civil and military markets.

Mahindra Aerospace – Mahindra Aerospace subsidiary of Mahindra Group specializes in production of light aircrafts & aero composites. In 2011, it signed a MoU with Eurocopter Group and its subsidiary Eurocopter India, to manufacture sub-assemblies and other engineering products for the growing helicopter market in India.

Larsen Toubro HED Aerospace – Larsen Toubro HED Aerospace division specializes in production of aero composites, sandwich honeycomb structures for aerospace & space sector.


===============
===============

Emerging Opportunities

India is considered to be one of the fastest-growing aerospace markets in the world and is projected to be amongst the three largest markets globally by 2017. Estimation depicts that India is likely to spend about $35 billion on military aviation only over the next 10 years, as most of its existing fleet needs to be replaced. The figures projected for procurement during next 5-10 years are, 500 helicopters by the IA, 350 helicopters by the IAF, 200 helicopters by the IN & ICG and about 400 by civil market.

In a massive multibillion dollar acquisition programme, the Indian Armed Forces plan to induct more than 1,000 indigenous and foreign helicopters for attack, transport and utility operations. The choppers to be inducted into the Army, Navy and Air Force include around 450 light utility, 12 VVIP, over 200 attack helicopters, 139 Mi-17 transport & 15 heavy-lift helicopters and over 91 (16+75) multi-role helicopters for the Navy. The civilian segment also in the next five to ten years will require over 400 helicopters for civil/commercial use, taking the overall requirement of helicopters in the country to around 1500.

In a drive to modernize the armed forces and expand the aviation wings of the Services, concerted efforts are on to modernize their helicopter fleet by replacing the age-old Cheetah and Chetak, which have been in service for the last 40 years. The plan is to induct almost 623 helicopters through import route in the near future at an overall cost of approximately USD30 billion. HAL will provide 166 indigenous Dhruv Advanced Light Helicopter (ALH). It is expected that 312 light, 80 medium-lift, 22 attack, 16 anti-submarine warfare, 15 heavy-lift and 12 VVIP helicopters will be procured from foreign vendors in the next few years.

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===============

Commercial Sector

The helicopter market in civil is equally promising, with growing requirements in tourism, mining, corporate travel, air ambulance, homeland security, air charter etc. In coming years, the helicopters are going to be utilised for fire-fighting, surveillance, law and order, road traffic control, electronic media reporting, construction work aids, shuttle services between airport and town. Due to the support and involvement of the new government in improving the infrastructure and creating more numbers of big cities, more players are entering into this market with a sizeable fleet and relaxation on taxes, airport charges, and liberal policies by government is likely to encourage investments in this sector. The concept of air ambulance is also emerging and has great long-term potential in the Indian market. The air charter wing provides lifesaving services to patients and transports them from remote locations to cities, has witnessed a five-fold increase in demand over the last three years. A conservative projections show that during the next 8-10 years about 400+ new helicopters will be inducted in the civil industry. India has witnessed a big demand for rotor wing pilots due to heavy demand in helicopter operations and number of helicopter imports are expected to come to India till 2020. Currently 367 helicopters (source: aviation news and rotor wing society of India) are awaiting for their permits and this number will rise exponentially as India is opening heavily towards application of helicopter services. More than 350 Helipads are being built in the country mostly catering to the needs of air ambulance, high rise building, private helipads, corporate helipads etc. Today, Multinational companies like ONGC, ESSAR, RELIANCE, JINDALS, PUNJ LYODD and all State Governments are expanding towards owning their own fleet of helicopters for their private use as well as charter operations. Presently, the civil helicopter market is growing at 20 percent and the projected market is about 40 machines per year for next 5-10 years and it is projected that demand for private air services to grow 50 percent a year, driven by rising car ownership and poor investment in road infrastructure.

The opportunities in the helicopter avionics and engines are also likely to increase multifold. Few of the emerging sectors are:

Engines: India has over 1500 units of engine requirements in coming years. Ardiden1H1 Shakti engine has been jointly developed by Hindustan Aeronautics Limited and Turbomeca.

Cockpit & Avionics: Glass cockpits with multi-functional displays are in huge demand. HAL and IAI have jointly developed glass cockpit for HAL Dhruv helicopter. Avionics suites consisting of a HF/UHF communications radio, identification, friend or foe (IFF) recognition, Doppler navigation, and a radio altimeter; a weather radar, navigation radars and also avionics for day-and-night flight observation are also in huge demand. Samtel and Thales have formed a joint venture in 2010 for production of Helmets Mounted Sight & Display (HMSD) and other Avionics Systems for India.

Electronics Warfare (EW) systems: Saab Compact Integrated Defensive Aids Suite (CIDAS), has been selected by HAL for its Dhruv, Rudra and LCH helicopters. Saab has signed a MoU with HAL in 2011 to form joint venture for Airborne Electronic Warfare systems. Similarly, Bharat Electronics Ltd & Elbit Systems-Elisra are working together on Airborne electronic warfare programmes for Indian defence requirements.

Optronics & Targeting Systems: Elbit Systems Compact Multi Purpose Advance Stabilization System (CoMPASS) & opto- electronic suite for reconnaissance and target acquisition are in use in HAL Dhruv, Rudra & LCH helicopters. In 2013, Bharat Electronics signed a Memorandum of Understanding (MoU) with Elbit Systems Electro-optics-El Op of Israel, for the joint production of CoMPASS payloads for Naval helicopter applications.

Weapon & Missiles: Nexter THL-20 chin mounted gun turret and MBDA Mistral short-range Air-to-air missiles are in use in HAL Rudra and HAL LCH helicopters. There are requirements for helicopter launched 4th generation anti-tank guided missiles. There are also more requirements of helicopter turreted cannons, air to air missiles in coming years.

Aero composites: HAL composites manufacturing division manufactured the composite structural parts for Dhruv , Light Combat Helicopter (LCH).Also, Indian companies like Tata advanced materials ltd, Larsen Turbo HED Aerospace division , Mahindra Aerospace are also in aero composites manufacturing sector .Market for aero composites is growing at a huge scale.

Maintenance Repair & Overhauling (MRO) and Other Infrastructure:
Growth in the general aviation market is expected to be around 12-15 percent in the coming years offering ample opportunities for everyone. The MRO space is almost untapped. With more than 1,500 helicopters expected in the next decade, there is also a huge potential on the maintenance side. Infrastructure development, flexibility in regulatory framework, government focus in structuring the air charter business, easing taxes/duties and construction of dedicated general aviation airports can take air charter operations in India to new highs. Presently, only HAL does maintenance repair & overhauling, logistics and services for armed forces helicopters. It is a multi-million dollar segment in Indian military helicopters sector.

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Suggested Way Forward

The Indian private sector presently is not willing to take the risk of making the huge investments required to build the infrastructure for the aerospace sector, in the absence of a firm commitment by the Government. Therefore, to ensure that product is available in time for replacement and the right technology comes to the country, consolidation of acquisition cases of similar platforms may be considered yet another means to develop the national defence industrial base through focused FDIs. Thus, for example, if the three services agree to select aircraft and helicopters with engines from a common source, then more than 1500 engines for helicopter alone would be on order taking military and civil requirements together. For this very attractive number, one of the viable options can be to allow the engine manufacturer to set up a production facility in India even if 100% FDI in the enterprise is sought by the OEM rather than import. Similarly since each engine has a set of 6 propellers, which transforms into about 7000 to 9000 propellers, any propeller manufacturer will be more than willing to set up a subsidiary in India for a potential domestic market.

Orders for 258 Mi17 helicopters from Russia have been signed with no production facility in India. Likewise, 197 helicopters for the army and air force, 56 utility helicopters and 91 (16+75) multi-role helicopters for the navy are acceptable to be procured from foreign OEMs with their production facility abroad but amazingly, it is not acceptable that these OEMs set up a production facility either as a wholly owned subsidiary or even a majority JV in India to manufacture these helicopters in India due to "security risk". Whereas, it is so obvious, that manufacturing these abroad by the OEM and then being delivered in India will have more security risk vis-a- vis being built in India by the same OEM, as their set up will be in India and therefore, they will have to go by the agreed set of rules & regulations. This will also enhance our core national priorities such as job creation and getting the right technology and natural spinoffs in other sectors also. The case for a higher FDI in the defence sector is in the national interest provided foreign OEMs set up legitimate companies in India under the Companies Act and comply with the taxation and regulatory framework of the country. Infringements by the OEM abroad are not subject to Indian law, not visible and neither subject to close oversight by Indian buyers and the country is often faced with alleged scams whose investigation is endless. Incidentally, the Government has approved Public Sector for Joint Ventures with FDI in excess of the stipulated 26% and all of them have turned out to be successful ventures (BrahMos is a 50.5:49.5 JV, HAL/BAE is a 50:50 JV, HAL: RR is a 50:50 JV, FGFA is a 50:50 JV). But a similar dispensation is not being extended to the private sector.


Kavita Nagpal

Source : HELICOPTERS: CONSOLIDATION APPROACH NEEDED FOR PRODUCTION IN INDIA RATHER THAN IMPORT

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Dhairya Yadav

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Nice Analysis.

Such a push for helicopter production can be done by Govt only, much like in the case of Aircraft production by Embraer in Brazil.
Before Foreign companies , I think HAL should form a JV with a Private Firm for Production.
This will increase the confidence of other private firms and they would readily invest in Aerospace sector, which India badly needs.
 

Blackwater

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Maaf karo , first fill ur requirements which is 30 yrs behind then think of producing
 

jackprince

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Maaf karo , first fill ur requirements which is 30 yrs behind then think of producing
And I suppose domestic PVT.-Public JV cannot do so?

Well, at least MoD-i has taken the advice it seems, as LUH tender has been cancelled and as stated the new tender will be for public-pvt. JV for 440 LUH. A long way to go, but the third or fourth step has been taken.
 

Zebra

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Nice Analysis.

Such a push for helicopter production can be done by Govt only, much like in the case of Aircraft production by Embraer in Brazil.
Before Foreign companies , I think HAL should form a JV with a Private Firm for Production.
This will increase the confidence of other private firms and they would readily invest in Aerospace sector, which India badly needs.
Better split HAL in three parts....

1) trainer and small aircrafts division
2) helicopter division
3) fighter jet and all kind of bigger aircrafts division

Sell 50% of 1st and 2nd divisions to two different Indian private companies.

With a further option of 20% share that govt may sell after 10 years to same private company. Rest 30% will stay with govt for ever.

And give them day to day operations from day one.

Let 3rd division stay with govt itself, as it is.

Tata and Mahindra may like it.
 

anupamsurey

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in the near future i would love to see rudra, Lch as a backbone of our defense forces. we already have some platform so lets develop it. but the production rates must be faster to meet the requirements, otherwise i don't know how HAL will stop the armed forces from opting to some other vendors.
more ever, the private firms will be reluctant to participate or ford on their own is helo technology..every body want to have a guarantee.
 
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Pulkit

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HELICOPTERS: CONSOLIDATION APPROACH NEEDED FOR PRODUCTION IN INDIA RATHER THAN IMPORT




Indian defence forces presently have a fleet of over 650 helicopters, approximately 300 with the Indian Air Force (IAF), 180 with the Indian Army (IA) and another 150 with the Indian Navy (IN) including Indian Coast Guard. The Alouette and Lama helicopters, called Chetak or Cheetah have been the prime machines ever since the 1960s and have already been through few upgradations. Nearly 78 percent of them are light or medium lift and include the Cheetah, Chetak & Mi series and are slated for replacement.

Current Inventory & Procurement Programme of Helicopters

Indian Air Force: The current helicopter fleet inventory of the IAF is estimated to have nearly 300 aircraft, the bulk of which are the 150+ Mi-8/Mi-17 family with another 80 Mi-17V5s to supplant the ageing Mi-8s. 75 Chetak/Cheetah and about 30 Mi25/35 attack helicopters serve with various units. The IAF retains four heavy lift Mi-26 helicopters which are used sparingly as sky cranes for special missions. The procurement programme of IAF is given in the following points.

  1. Mi-17 V-5 --- 80 ---- $ 1.34 Billion (Rs 4800 crores) ------ Deliveries have been completed.
  2. Mi-17 V-5 --- 59+12* ---- $1.9 Billion (Rs 7600 crores) ----- First batch of 19 Mi-17 V-5 has been delivered. The remaining 40 helicopters to be supplied by the end of 2015. * 12 for Ministry of Home Affairs
  3. Indigenous ALH Dhruv ---- 204 — Delivery ongoing from HAL
  4. Attack Helicopters ---- 22 ---- $1.4 Billion (Rs 5600 crores) ------ Apache AH 64D in lead; Option for 22 more
  5. Heavy-Lift Helicopters ---- 15 ---- $650 Million (Rs 2600 crores) ------ Boeing's Chinook has been selected over Russia's Mi 26T2
  6. Light Utility Helicopters ----- 64 ---- $750 Million* (Rs 3000 crores) ----- Eurocopter Fennec 555 and Russia's Kamov 226 contenders.cost includes 133 for Army
  7. Indigenous Light Utility Helicopters ----- 61 ----- $ 83.2 Million* (Rs 376 crores) ------ *cost includes 126 for Army. HAL delivery 2017 onwards
  8. VVIP Helicopters ------ 12 ------ $900 Million (Rs 3600 crores) ---- Three of the 12 helicopters have already been delivered. Deliveries of others stalled owing to deal being cancelled
  9. Light Combat Helicopter ------- 65 -------- $1.4 billion (Rs 5600 crores) ----- To be made by HAL 2014-2015
  10. Weaponised utility helicopter ------- 76 — By HAL by 2013, 100+ by 2019

===============
===============

Indian Army: The Army Aviation Corps (AAC) currently flies 180 helicopters consisting of 100 HAL Chetaks (Alouette II) and 50 HAL Cheetahs (Alouette III). The newest Cheetah airframes are currently in the process of being upgraded / overhauled to the HAL Lancer configuration. The HAL Dhruv will initially replace the Chetak fleet, which was originally obtained second hand from the Indian Air Force. The procurement programme of IA is as given in the following points.

  1. Light Combat Helicopters --------- 114 ------- $94 Million, Rs 376 Crores (Development & Designing Cost)
  2. Light Utility Helicopter ---- Total – 384, Indigenous – 187 (126 for Army and 61 for IAF) $750 Million,
  3. Dhruv ALH ------- 105 — 2015 ------ To be fitted with newly developed Shakti engine

===============
===============

Indian Navy: The Navy has approximately 150 helicopters, both operating from shore bases and on-board warships including the aircraft carrier INS Viraat which embarks a complement of Sea Harriers and Kamov Ka-31s, Sea King and Chetak helicopters. The current fleet also includes several helicopters including the British Sea Kings, Russian Kamov, indigenous Dhruv Advanced Light Helicopters, and the Chetaks. The Kamov Ka-31s provide AEW support for the fleet. In the anti-submarine warfare role, the Sea King Mk 42A/B and Kamov Ka-25/28 are used. The Navy is looking at inducting state-of-the-art helicopters with latest standards, variants and weapons. The MRH (Multirole helicopter), NUH (Naval Utility Helicopter) are some of these. Procurement programme of Navy is as given in the following points.

  1. Multi – Role Helicopter ----- 16 + 44 follow-on order ------- $ 1 billion -------- American S-70 Bravo and European NH-90 remain in the fray.CCS clearance awaited
  2. Multi – Role Helicopter ------ 75 -------- $ 4 billions ----- RFI issued in Jun 2011. RFP to be issued soon. Navy requires two variants for Special Ops & for ASW to replace Sea Kings.
  3. Naval Light Utility Helicopters ----- 56 --- $1.75 billion (Rs 8750 Crores) ----- RFP issued. Likely Contenders:
  4. Kamov Ka -31 ----- 5 $195-200 Million (Rs 1000 crores) ------ Approved by Government. Deal yet to be signed

===============
===============

Indian Coast Guard (ICG): At present the ICG has an inventory of 17 Chetak helicopters and 3 ALHs all supplied by HAL. Two RFIs have been issued in 2010 by the ICG's Directorate of Aircraft Acquisition covering planned purchase of 30 helicopters (16 ship based and 14 shore based). However, the tender for procurement of 16 ship based helicopters was cancelled and the fresh tender is most likely to be issued this year. The ICG has plans for an eventual fleet of 36 light observation helicopters and 12 rescue helicopters. The service is expected to achieve an effective strength of about 60 helicopters by 2018, which is clearly indicative of the emergence of a new, modern and far more capable Coast Guard.

Civil/ Commercial: The civilian segment presently has over 300 rotor wing helicopters and in the next five to ten years will require over 400 helicopters for commercial use. Fleet strength and no. of Operators in India is as per the list.

  1. Private Category ----- 17 ------ 27
  2. Commercial Operators ------- 64 ------- 228
  3. Govts. /Semi-Govt. -------- 17 ---------- 29
  4. Total ------ 98 ---------- 284 Turbine Helicopters

===============
===============


Indigenous Programme
India also has a strong indigenous helicopter programme being led by Hindustan Aeronautics Ltd (HAL). HAL is a multi-billion defence public sector unit which specializes in manufacture and assembly of aircrafts, helicopters, engines & aero composites. The HAL Helicopter Division has produced 336 Chetak and 246 Cheetah Helicopters so far and overhauled more than 200 helicopters of both the types. It has also undertaken the Cat 'B' repairs of more than 75 helicopters and put them back into operation. Among the current programs underway at HAL are the development and production of the Advanced Light Helicopter (ALH) Dhruv, which has various variants of it to fulfill conceived roles by the armed and civil services. The development and production of the first indigenous Light Combat Aircraft (LCA) Mk I and II, christened as Tejas is under way. However, in the defence sector most of the requirements are currently being made by procuring the helicopters from foreign countries either directly or through transfer of technology. Firm orders received from defence forces are as per list.

  1. ALH Dhruv ------- 204 ------- Delivery began with higher powered Shakti engine to the Indian Army and IAF last year. Further batches will be delivered this year. HAL has firm orders for 159 and sees a requirement for a minimum of 80 more.
  2. Light Utility Helicopter ------ 187------- IOC is likely around 2017.
  3. Light Combat Helicopter ----- 179 ------ Prototype stage
  4. Weaponised utility Helicopter ---- 76 ------- 2019-22

HAL will need to make massive investments for its helicopter division, to have the required infrastructure ready in time for the LUH, LCH and IMRH production. By the year 2015, HAL plans on having three helicopter manufacturing plants with one in Bangalore and the other two outside. Bangalore will be the centre of R&D for helicopters and for manufacturing of 5.5 to 6.0 tonne helicopters. 3.0 tonne and 12.0 tonne will move out to another location for manufacture. The defence forces fleet needs replacement and new acquisition in the very near future, which HAL is unlikely to fulfill and given the past history of delays and resource diversification of HAL in FGFA, MTA and various other projects it may have to go to the international market for procurement of light utility helicopters, Attack and Heavy Lift.


===============
===============


Indian Aerospace Companies & Partnerships

Tata Group – In 2012, Tata Sons and Agusta Westland formed a joint venture company for manufacturing AW119Ke light helicopters in India. In 2010, Tata Advanced Systems Ltd formed a joint venture for manufacture of the Sikorsky S-92 helicopters in India for the domestic civil and military markets.

Mahindra Aerospace – Mahindra Aerospace subsidiary of Mahindra Group specializes in production of light aircrafts & aero composites. In 2011, it signed a MoU with Eurocopter Group and its subsidiary Eurocopter India, to manufacture sub-assemblies and other engineering products for the growing helicopter market in India.

Larsen Toubro HED Aerospace – Larsen Toubro HED Aerospace division specializes in production of aero composites, sandwich honeycomb structures for aerospace & space sector.


===============
===============

Emerging Opportunities

India is considered to be one of the fastest-growing aerospace markets in the world and is projected to be amongst the three largest markets globally by 2017. Estimation depicts that India is likely to spend about $35 billion on military aviation only over the next 10 years, as most of its existing fleet needs to be replaced. The figures projected for procurement during next 5-10 years are, 500 helicopters by the IA, 350 helicopters by the IAF, 200 helicopters by the IN & ICG and about 400 by civil market.

In a massive multibillion dollar acquisition programme, the Indian Armed Forces plan to induct more than 1,000 indigenous and foreign helicopters for attack, transport and utility operations. The choppers to be inducted into the Army, Navy and Air Force include around 450 light utility, 12 VVIP, over 200 attack helicopters, 139 Mi-17 transport & 15 heavy-lift helicopters and over 91 (16+75) multi-role helicopters for the Navy. The civilian segment also in the next five to ten years will require over 400 helicopters for civil/commercial use, taking the overall requirement of helicopters in the country to around 1500.

In a drive to modernize the armed forces and expand the aviation wings of the Services, concerted efforts are on to modernize their helicopter fleet by replacing the age-old Cheetah and Chetak, which have been in service for the last 40 years. The plan is to induct almost 623 helicopters through import route in the near future at an overall cost of approximately USD30 billion. HAL will provide 166 indigenous Dhruv Advanced Light Helicopter (ALH). It is expected that 312 light, 80 medium-lift, 22 attack, 16 anti-submarine warfare, 15 heavy-lift and 12 VVIP helicopters will be procured from foreign vendors in the next few years.

===============
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Commercial Sector

The helicopter market in civil is equally promising, with growing requirements in tourism, mining, corporate travel, air ambulance, homeland security, air charter etc. In coming years, the helicopters are going to be utilised for fire-fighting, surveillance, law and order, road traffic control, electronic media reporting, construction work aids, shuttle services between airport and town. Due to the support and involvement of the new government in improving the infrastructure and creating more numbers of big cities, more players are entering into this market with a sizeable fleet and relaxation on taxes, airport charges, and liberal policies by government is likely to encourage investments in this sector. The concept of air ambulance is also emerging and has great long-term potential in the Indian market. The air charter wing provides lifesaving services to patients and transports them from remote locations to cities, has witnessed a five-fold increase in demand over the last three years. A conservative projections show that during the next 8-10 years about 400+ new helicopters will be inducted in the civil industry. India has witnessed a big demand for rotor wing pilots due to heavy demand in helicopter operations and number of helicopter imports are expected to come to India till 2020. Currently 367 helicopters (source: aviation news and rotor wing society of India) are awaiting for their permits and this number will rise exponentially as India is opening heavily towards application of helicopter services. More than 350 Helipads are being built in the country mostly catering to the needs of air ambulance, high rise building, private helipads, corporate helipads etc. Today, Multinational companies like ONGC, ESSAR, RELIANCE, JINDALS, PUNJ LYODD and all State Governments are expanding towards owning their own fleet of helicopters for their private use as well as charter operations. Presently, the civil helicopter market is growing at 20 percent and the projected market is about 40 machines per year for next 5-10 years and it is projected that demand for private air services to grow 50 percent a year, driven by rising car ownership and poor investment in road infrastructure.

The opportunities in the helicopter avionics and engines are also likely to increase multifold. Few of the emerging sectors are:

Engines: India has over 1500 units of engine requirements in coming years. Ardiden1H1 Shakti engine has been jointly developed by Hindustan Aeronautics Limited and Turbomeca.

Cockpit & Avionics: Glass cockpits with multi-functional displays are in huge demand. HAL and IAI have jointly developed glass cockpit for HAL Dhruv helicopter. Avionics suites consisting of a HF/UHF communications radio, identification, friend or foe (IFF) recognition, Doppler navigation, and a radio altimeter; a weather radar, navigation radars and also avionics for day-and-night flight observation are also in huge demand. Samtel and Thales have formed a joint venture in 2010 for production of Helmets Mounted Sight & Display (HMSD) and other Avionics Systems for India.

Electronics Warfare (EW) systems: Saab Compact Integrated Defensive Aids Suite (CIDAS), has been selected by HAL for its Dhruv, Rudra and LCH helicopters. Saab has signed a MoU with HAL in 2011 to form joint venture for Airborne Electronic Warfare systems. Similarly, Bharat Electronics Ltd & Elbit Systems-Elisra are working together on Airborne electronic warfare programmes for Indian defence requirements.

Optronics & Targeting Systems: Elbit Systems Compact Multi Purpose Advance Stabilization System (CoMPASS) & opto- electronic suite for reconnaissance and target acquisition are in use in HAL Dhruv, Rudra & LCH helicopters. In 2013, Bharat Electronics signed a Memorandum of Understanding (MoU) with Elbit Systems Electro-optics-El Op of Israel, for the joint production of CoMPASS payloads for Naval helicopter applications.

Weapon & Missiles: Nexter THL-20 chin mounted gun turret and MBDA Mistral short-range Air-to-air missiles are in use in HAL Rudra and HAL LCH helicopters. There are requirements for helicopter launched 4th generation anti-tank guided missiles. There are also more requirements of helicopter turreted cannons, air to air missiles in coming years.

Aero composites: HAL composites manufacturing division manufactured the composite structural parts for Dhruv , Light Combat Helicopter (LCH).Also, Indian companies like Tata advanced materials ltd, Larsen Turbo HED Aerospace division , Mahindra Aerospace are also in aero composites manufacturing sector .Market for aero composites is growing at a huge scale.

Maintenance Repair & Overhauling (MRO) and Other Infrastructure:
Growth in the general aviation market is expected to be around 12-15 percent in the coming years offering ample opportunities for everyone. The MRO space is almost untapped. With more than 1,500 helicopters expected in the next decade, there is also a huge potential on the maintenance side. Infrastructure development, flexibility in regulatory framework, government focus in structuring the air charter business, easing taxes/duties and construction of dedicated general aviation airports can take air charter operations in India to new highs. Presently, only HAL does maintenance repair & overhauling, logistics and services for armed forces helicopters. It is a multi-million dollar segment in Indian military helicopters sector.

===============
===============

Suggested Way Forward

The Indian private sector presently is not willing to take the risk of making the huge investments required to build the infrastructure for the aerospace sector, in the absence of a firm commitment by the Government. Therefore, to ensure that product is available in time for replacement and the right technology comes to the country, consolidation of acquisition cases of similar platforms may be considered yet another means to develop the national defence industrial base through focused FDIs. Thus, for example, if the three services agree to select aircraft and helicopters with engines from a common source, then more than 1500 engines for helicopter alone would be on order taking military and civil requirements together. For this very attractive number, one of the viable options can be to allow the engine manufacturer to set up a production facility in India even if 100% FDI in the enterprise is sought by the OEM rather than import. Similarly since each engine has a set of 6 propellers, which transforms into about 7000 to 9000 propellers, any propeller manufacturer will be more than willing to set up a subsidiary in India for a potential domestic market.

Orders for 258 Mi17 helicopters from Russia have been signed with no production facility in India. Likewise, 197 helicopters for the army and air force, 56 utility helicopters and 91 (16+75) multi-role helicopters for the navy are acceptable to be procured from foreign OEMs with their production facility abroad but amazingly, it is not acceptable that these OEMs set up a production facility either as a wholly owned subsidiary or even a majority JV in India to manufacture these helicopters in India due to "security risk". Whereas, it is so obvious, that manufacturing these abroad by the OEM and then being delivered in India will have more security risk vis-a- vis being built in India by the same OEM, as their set up will be in India and therefore, they will have to go by the agreed set of rules & regulations. This will also enhance our core national priorities such as job creation and getting the right technology and natural spinoffs in other sectors also. The case for a higher FDI in the defence sector is in the national interest provided foreign OEMs set up legitimate companies in India under the Companies Act and comply with the taxation and regulatory framework of the country. Infringements by the OEM abroad are not subject to Indian law, not visible and neither subject to close oversight by Indian buyers and the country is often faced with alleged scams whose investigation is endless. Incidentally, the Government has approved Public Sector for Joint Ventures with FDI in excess of the stipulated 26% and all of them have turned out to be successful ventures (BrahMos is a 50.5:49.5 JV, HAL/BAE is a 50:50 JV, HAL: RR is a 50:50 JV, FGFA is a 50:50 JV). But a similar dispensation is not being extended to the private sector.


Kavita Nagpal

Source : HELICOPTERS: CONSOLIDATION APPROACH NEEDED FOR PRODUCTION IN INDIA RATHER THAN IMPORT

==========================
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very nice analysis ....

But something that caught my attention here is


Light Utility Helicopters ----- 64 ---- $750 Million* (Rs 3000 crores) ----- Eurocopter Fennec 555 and Russia's Kamov 226 contenders.cost includes 133 for Army
Indigenous Light Utility Helicopters ----- 61 ----- $ 83.2 Million* (Rs 376 crores) ------ *cost includes 126 for Army. HAL delivery 2017 onwards

Why is there such a huge difference in cost?
 
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SilentKiller

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very nice analysis ....

But something that caught my attention here is

Why is there such a huge difference in cost?
i guess missed a zero from indigenous LUH.
And govt has already scrapped LUH RPF, all LUH will be constructed in india and it will be HAL.
Time frames and some current helicopter counts and orders have been missed, seems like few weeks older topic.
both coast guards and navy have ordered for 16 each dhruv, Army for more helicopters etc.

Still nice topic to read.
 
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Pulkit

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I thot the same but that appears not to be true .... Its just not a zero misplaced.....
Yes it has been cancelled (Multiple times in last few years)and has been brought under made in India category. DHRUV LUH LCH RUDRA and future LUH armed willl be part of Made in India initiative taken up by Modi Govt...
Though I would like to have few Chetak/chetal till LUH is ready the assembly is running and they will be cheap and they do there role quite great.....

Both the figures in Dollars and Rupees co-relate..... so something is getting missed here .....

The deal worth 6000 crore was cancelled .... to acquire 197 LUH


Defence ministry scraps Rs 6,000cr tender for purchase of 197 helicopters - The Times of India


i guess missed a zero from indigenous LUH.
And govt has already scrapped LUH RPF, all LUH will be constructed in india and it will be HAL.
Time frames and some current helicopter counts and orders have been missed, seems like few weeks older topic.
both coast guards and navy have ordered for 16 each dhruv, Army for more helicopters etc.

Still nice topic to read.
 

SilentKiller

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I thot the same but that appears not to be true .... Its just not a zero misplaced.....
Yes it has been cancelled (Multiple times in last few years)and has been brought under made in India category. DHRUV LUH LCH RUDRA and future LUH armed willl be part of Made in India initiative taken up by Modi Govt...
Though I would like to have few Chetak/chetal till LUH is ready the assembly is running and they will be cheap and they do there role quite great.....

Both the figures in Dollars and Rupees co-relate..... so something is getting missed here .....

The deal worth 6000 crore was cancelled .... to acquire 197 LUH


Defence ministry scraps Rs 6,000cr tender for purchase of 197 helicopters - The Times of India
22 Cheetals are on order as stop gap measure.
Once we start replacing older Cheetals with LUH's, we can surely export our older but refurbished Cheetals to Afghans..this can be an option in future.
Same way Rudra too is stop gap measure for LCH, army has 114 on order. eagerly awaiting its induction.

Count too is in correct for current helicopter.
Airforce: 373, Army: 204, Navy:125, coast guard: 27 (nearest or approx correct for Navy 150 including coast guard).
 
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nirranj

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Light Utility Helicopters ----- 64 ---- $750 Million* (Rs 3000 crores) ----- Eurocopter Fennec 555 and Russia's Kamov 226 contenders.cost includes 133 for Army
Indigenous Light Utility Helicopters ----- 61 ----- $ 83.2 Million* (Rs 376 crores) ------ *cost includes 126 for Army. HAL delivery 2017 onwards
This sums it all.For the same quantity we are ready to pay 9 times more to a foreign vendor. But we are not ready to pay the hard earned money to Indian companies and people. If the order for all the 384 Light utility helicopter is handled within India we will have a whopping 3376 Crore rupees of Investment within India and with such a big money we can easily recruit consultants from abroad for Design and Development. The money stays within India, we have the opportunity to develop things within India from scratch, build a competent Helicopter Industry within India. One good thing to do will be to create two competing Helicopter Design and production houses within India. Just as the Russians have the Mi and Ka Design houses which cater for varying needs.

We are now building FAC's to Submarines to Aircraft carriers within India. Now our Naval RnD and manufacturing setup is amassing new technologies like the Warship grade steel, Compact nuclear reactors, Stealth designs etc etc. We need to follow the same path in Aviation too. We need to develop a competent Aviation Industry wthin India. Else we are doing Injustice to our Past and to our future.
 

Pulkit

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Yeah we hope to see another prototype year and then at Air shaow in bangalore next year feb...
We are too eagerly waiting....
22 Cheetals are on order as stop gap measure.
Once we start replacing older Cheetals with LUH's, we can surely export our older but refurbished Cheetals to Afghans..this can be an option in future.
Same way Rudra too is stop gap measure for LCH, army has 114 on order. eagerly awaiting its induction.
 

EXPERT

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private companies are hesitating to take any step forward, because the market require huge investment and other resources. so government full assurance and back up is the only option for our future indigenous Helo manufacturing .

other thing is that HAL should be given some time as it has a lot of burden with its ongoing projects but they on the right track, only the thing is they have to speed up the way of working because the competition is going to increase and HAL will not be the sole bidder for any further contracts.
 

sgarg

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This sums it all.For the same quantity we are ready to pay 9 times more to a foreign vendor. But we are not ready to pay the hard earned money to Indian companies and people. If the order for all the 384 Light utility helicopter is handled within India we will have a whopping 3376 Crore rupees of Investment within India and with such a big money we can easily recruit consultants from abroad for Design and Development. The money stays within India, we have the opportunity to develop things within India from scratch, build a competent Helicopter Industry within India. One good thing to do will be to create two competing Helicopter Design and production houses within India. Just as the Russians have the Mi and Ka Design houses which cater for varying needs.

We are now building FAC's to Submarines to Aircraft carriers within India. Now our Naval RnD and manufacturing setup is amassing new technologies like the Warship grade steel, Compact nuclear reactors, Stealth designs etc etc. We need to follow the same path in Aviation too. We need to develop a competent Aviation Industry wthin India. Else we are doing Injustice to our Past and to our future.
This is the reason why China is close to becoming a superpower and India is a kicked-around power.

No country has become a military power through imports. It simply does not happen.

The real reason are massive packets (this time in foreign currency). Anybody familiar with India's political and bureaucratic class understands how the system works.

However I understand that system wont change in a day. So BJP is doing it right - bringing incremental change. Developing capability to design and manufacture are important steps.
 

sgarg

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private companies are hesitating to take any step forward, because the market require huge investment and other resources. so government full assurance and back up is the only option for our future indigenous Helo manufacturing .

other thing is that HAL should be given some time as it has a lot of burden with its ongoing projects but they on the right track, only the thing is they have to speed up the way of working because the competition is going to increase and HAL will not be the sole bidder for any further contracts.
I doubt there is any hesitation. The private companies are very keen to set up plants for aviation products. The problem is from government and military side.

The government will have to provide for costs of setting up plants to private sector. If HAL plant is set up with government money, why not a Tata plant. The defence products cannot be treated like commercial products.
 

sgarg

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The primary reasons for not giving work to private sector is the fear that public sector cannot compete with the private companies. So public sector fears loss of jobs and are very vocal (violent) to stop entry of private sector.

When you set the country on a socialist path, it is very hard to change course. The socialism should be limited to public welfare. Economy should be left alone. However India has adopted a strange form of socialism through public sector which benefits no one. All sensible countries have privatized their public sector.
 

Kunal Biswas

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The deal was hiked to double, No wonder it got cancelled ..

For the amount one can open 2 separate production lines for Dhruv which out climb and out range all other contenders ..

The deal worth 6000 crore was cancelled .... to acquire 197 LUH
 

Dhairya Yadav

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Mahindra Aerospace is constructing a manufacturing plant at Bangalore. Does anyone know what will be built there?
 

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