All is not well between the Indian Air Force (IAF) and Hindustan Aeronautics Limited (HAL), one of India's largest aerospace companies. So much so that of the USD 150 billion defence deals that IAF has planned for the next 15 years, all HAL gets will be crumbs off the table. The reason: the IAF is miffed with HAL, which has not developed into an agency that can provide the cutting-edge state-of-the-art technology to the IAF.



The IAF is also miffed with HAL for not meeting deadlines, delivering cutting-edge research and development or even keeping pace with international aviation giants. "HAL has not been able to transform itself into a forward-looking aerospace hub when compared to other agencies like Israeli Aircraft Industry or even Embraer of Brazil that started around the same time," Air Marshal PP Reddy, director general flight safety and inspection said on Wednesday.

The HAL Dhruv, the Advanced Light Helicopter. Picture courtsey bharatrakshak.com The HAL Dhruv, the Advanced Light Helicopter. Picture courtsey bharatrakshak.com

Speaking to Headlines Today on the sidelines of a conference on Challenges and Opportunities in Aerospace, Air Marshal Reddy insisted the way forward was more foreign direct investment in defence sector. The IAF is at odds with Defence Minister AK Antony who barely three weeks ago put his foot down on 26 per cent FDI in defence."Aviation industry is capital intensive. There are long incubation periods. In this sector in India FDI was not permitted till 1991 and even now only 26 per cent is permitted which international players do not find attractive. Why restrict FDI? We need to think about it," Reddy said. He drew parallels with international players like Agusta Westland saying it is owned by Finnmeccanica and UK had no problem having it. "France, UK, US are countries where government contributes on R&D in the civil aviation sector too. There is no support to the same here. That needs to change," he added.

The HAL Hawk, an Advanced Jet Trainer. Picture courtsey aviationnews.eu The HAL Hawk, an Advanced Jet Trainer. Picture courtsey aviationnews.eu

The Air Warrior did not pull his punches taking on HAL. "India is the largest importer of arms. A major portion of this is in the aerospace sector. 10-12 billion dollars which is 30-40 per cent of the defence budget is spent on purchases because the Indian aerospace industry has not been able to deliver," he said. The IAF is cut up with HAL for not being able to meet its requirements. While HAL was on the ball in terms of R&D in the 1970s and 80s when it came up with Marut, Kiran and Ajit trainers, it could not keep pace with IAF requirements in the 80s. The HAL has still not been able to deliver an Intermediate Jet Trainer (IJT) to the IAF. "Does the problem lie with the bureaucracy or lack of competition?" Air Marshal Reddy said.



Aircraft engines and avionics will be a major chunk of purchases in the 150 billion dollar deals over the next decade and a half. "However I am sad to say we even have to purchase washer and nuts from abroad," Reddy added. The IAF hopes this tough talk will compel the aviation sector do look within and come up with quality control and meet deadlines on delivery.



Speaking to Headlines Today SK Mittal, GM acquisition HAL said there had been delays and deadlines were missed but HAL was trying to deliver on time. "As the end user the IAF is well within its rights to complain about delays and deadlines not being met. However, there are circumstances at times beyond our control which we are trying to overcome."