This refers to your reports “HAL’s import, assemble, supply ‘model’” (Feb.5) and “Defence PSUs profiting on advances” (Feb.4). Hindustan Aeronautics Limited (HAL) is not privy to the reports but feels that some of the figures in the table are not factual and the assessments by The Hindu do not reflect the truth. Figures alone sometimes do not present the holistic picture.
For instance, you have written about HAL’s negligible contribution to indigenisation and research. It is important to know that HAL has 15 indigenous designs to its credit. In licence-build programmes, technology is transferred through SKD, CKD and raw material phases. Currently HAL manufactures both aircraft and helicopters under the indigenous and licence category. These include the Sukhoi 30, Hawk, LCA, HJT-36, Do 228, ALH, LCH, LUH, etc. All these platforms are being made from the raw material phase.
On the indigenisation front, HAL with its 10 research and development (R&D) centres and a base of 2,000-plus designers, has so far designed 15 types of aircraft and 700-plus types of aircraft accessories. In the aerospace ecosystem, HAL now has a vendor base of 2,500 Tier 2 and Tier 3 suppliers with a pan-India presence. The writer has completely ignored these facts.
Today, 80 per cent of the IAF platforms are supported by HAL. India is the only country where 60-year-old platforms fly, thanks to HAL. India is among six nations that have the capability to design and manufacture helicopters, thanks to HAL. Even as your reporter was piecing together his findings based on old reports, just days ago, HAL rolled out the first prototype of the HTT-40.
The writer should have highlighted the total value of production (VOP) calculations which include cost towards procurement of raw material (both imported and indigenous) and value-addition. For 2012-13, the VOP was Rs.14,201 crore, out of which material cost was Rs.8,008 crore (Rs.6,828 crore imported plus Rs.1,180 crore indigenous) and the value addition was Rs.6,193 crore. For 2014-15, the VOP was Rs.15,890 crore, of which Rs.7,773 crore included imported raw material and Rs.8,117 crore was indigenous content.
Regarding Defence Public Sector Units profiting on advances, it needs to be understood that the pricing mechanism (for aerospace products supplied by HAL) considers the benefit of improved cash flows through milestone payments. HAL follows transparent and well-established financial procedures laid down by the Government of India.
Gopal Sutar,Chief of Media Communications, HAL, Bengaluru
