GConnect is now available on Google Play Store. Download now!!
Translate this page:
Note: This is machine translation and therefore may not be very accurate.

Nashik HAL Production Unit could face Shut Down

The Nashik production facility of Hindustan Aeronautics Limited at Nashik could shut down if no new orders are placed reports a US based defence news website.

According to the report, this may lead to a domino effect that could see 400 local suppliers shut their shops over a lack of component orders.

HAL Nashik will complete the production of the remaining 8 Sukhoi Su-30MKI fighters on order by March. An executive with the Federation of Indian Chambers of Commerce & Industry, said 400 local suppliers that build about 6,000 components worth $12.5 million for each Sukhoi Su-30MKI fighter may also shut down if no new orders are placed with HAL.

HAL produces about 12 Sukhoi Su-30MKI multi-role fighters each year. The company is expected to complete the delivery of 272 Su-30MKI fighters by March 2020.

Another HAL executive said a formal request has been sent to the Indian Air Force and the Ministry for Defence that they place an additional order for 72 locally made Su-30MKI fighters for about $5 billion, but the government has not yet made a decision the report further added.

Each Su-30MKI is built by HAL for approximately ₹ 492 crores under license by Russia’s United Aircraft Corporation.

However, in Nov 2018, HAL CMD R Madhavan said the company’s Nashik factory would not be shut down, but admitted there will be shortage of workload there after 2021, which would be solved by “re-arranging its priorities.”

Madhavan said HAL would focus on continuity of business and develop vendors to avoid producing everything in-house.

“We will have shortage of workload in our Nashik factory after 2021, but we are re-arranging our priorities there. So, contrary to what people have been thinking, the unit is not going to shut down,” he told reporters.

Source : Indiadefencenews

You might also like