Another LCA manufacturing line by private sector economically unviable
Sources within the government said that such a move would lead to too much duplication, will increase costs, and is economically unviable
A separate manufacturing line for the indigenous Light Combat Aircraft (LCA) by the private sector is economically unviable, sources said ruling out any such possibility while stating that the Hindustan Aeronautics Limited (HAL) will have capability to produce 24 jets next year with the private industry involved in a big way. This has one of the suggestions from various quarters to speed up the delayed LCA production.
“A single type of aircraft is not produced by two different companies anywhere in the world. It will be too much duplication, will increase costs and is economically unviable. Private sector will be involved more and more in the current programme with HAL being the lead integrator,” an informed source said. For instance, in addition to the big companies, there are also 270 Micro, Small, and Medium Enterprises (MSME) working with HAL.
Now the LCA orders are for 180 aircraft beyond the earlier 40, which is a sizeable number. So HAL has gone for a third line, next year the production rate of the LCA will reach 24 aircraft per year, the source noted. Deliveries of the LCA-Mk1A by HAL to the Indian Air Force (IAF) have been delayed, in a major part due to non-delivery of F-404 engines by General Electric. The engine manufacturer has only two engines with which HAL will be able to handover two jets to the IAF this fiscal, sources said.
On the LCA-Mk1A, integration of the Israeli radar has been completed while weapon integration is on, sources said which includes air to air and air to ground weapons. The aircraft will be delivered while the integration will take sometime, sources said.
In 2021, the Defence Ministry had signed a ₹48,000 crore deal with Hindustan Aeronautics Limited (HAL) to supply 83 LCA-Mk1A, a more capable fighter than the current LCA-MK1 in service. As per contract, three jets were scheduled to be delivered to the IAF in February 2024 and 16 aircraft per year for subsequent five years. An order for 97 additional LCA-Mk1A is under process.
In September 2022, the Cabinet Committee on Security gave sanction for the development of the LCA-Mk2 at a total cost of ₹9,000 crore, a bigger and more capable fighter than the present LCA, and is currently under development. The LCA-Mk2 will be powered by the GE F-414 engine which produces 98kN thrust compared to 84kN thrust of the GE-404 engine powering the LCA Mk1 and MK1A. Discussions are in advanced stages for license manufacturing the engine in India. “Commercial terms of the agreement are being negotiated between HAL and GE. It is expected to be concluded this financial year,” sources said.
On the LCA-Mk2, IAF Chief Air Chief Marshal A. P. Singh said last month that it is supposed to do its first flight by October 2025 and by December 2027 is supposed to be end of the Research & Development phase. Officials had stated that deliveries of the LCA-MK2 are expected to commence from 2032 by which time the deliveries of all 180 LCA-MK1A are expected to be completed. As of now, the IAF has committed to procuring around 120 LCA-Mk2.
In September, then IAF Chief ACM V.R. Chaudhari while stating that while HAL remain the lead, suggested more public-private partnerships or joint ventures with private partners to ramp up production of the LCA. “Our present orders of 83 LCA-Mk1As, which will be followed up with 97 more, will definitely take a few years to fructify. The way forward is to diversify the production lines, have more public-private partnerships or joint ventures with private partners to have multiple weaponry lines as well as multiple production lines,” he had said.
“That is the way we can catch up with our requirements and be able to export to other nations as well,” he added while stressing that HAL should take the lead in any model evolved.
by March 2025 
