The Hindu : Karnataka News : HAL to look for major share in `offset business'

Online edition of India's National Newspaper
Friday, Feb 11, 2005

Karnataka

Karnataka

HAL to look for major share in `offset business'

By Our Staff Reporter

BANGALORE, FEB. 10. As business talks gathered momentum at the "Aero-India 2005" airshow, the state-owned aviation major, Hindustan Aeronautics Limited (HAL), unveiled its strategy to aggressively scout for a bigger share of the "offset business" arising out of Boeing and Airbus Industries' proposed sale of several new aircraft to Air India and Indian Airlines.

The HAL chairman, Ashok K. Baweja, is confident that the acquisition deals from the world's two biggest aviation companies will provide "a great opportunity" for offsets. Discussions are on with top officials of the two companies. "It is a big worldwide competition for offsets, and we are actively pursuing the business with the support of the Defence Ministry," he told presspersons at the airshow on Thursday.

The company's delivery of 900 Airbus doors, he said, was a learning process in the offset business. "Last July, we signed a $80 million contract to deliver more doors."

Another opportunity in this business came from the French ATR company. HAL has also initiated a dialogue with this firm to service its ATR 42 and ATR 72 aircraft. A business agreement is on the cards for maintenance of the aircraft in India as it will be a cost-effective solution for ATR, Mr. Baweja said.

HAL wants to enter into partnerships with as many countries as possible to synergise its efforts in the coming years, the chairman said. A European company has already signed a business agreement with HAL to export spares to them and two more business proposals are in the offing, he added.

LCA weaponisation

A weaponised model of the Light Combat Aircraft (LCA) Tejas is expected to be unveiled in the next six to eight months on the aircraft's Prototype Vehicle -2 (PV-2) platform. The Indian Air Force (IAF) has already identified the weapons to be integrated to the LCA, Mr. Baweja said.

HAL has built up the algorithm for weaponisation, which will now be integrated to the mission computer of the LCA's PV-2 version, he said. Quest, a Bangalore-based engineering solutions firm, has set up a full-scale weaponised model of the PV-2 at the Yelahanka Air Force Station, the airshow venue.

Mr. Baweja said HAL has gained experience in weaponisation through the Jaguar's upgrades and ALH's battle variants.

Projects

Mr. Baweja said that over the next few years HAL will focus on weaponisation of the ALH's battle variant and upgradation of MiGs, the Navy's Sea Harriers and other aircraft operated by the services.

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