MoD Signs Record ₹62,700 Crore Deal with HAL for 156 Helicopters.

In its largest-ever helicopter procurement, the Ministry of Defence (MoD) on Friday signed a ₹62,700 crore contract with Hindustan Aeronautics Ltd (HAL) for the supply of 156 Light Combat Helicopters (LCH) Prachand.

Following approval from the Cabinet Committee on Security, the MoD inked two agreements with HAL—one for 66 LCHs for the Indian Air Force (IAF) and another for 90 for the Indian Army. The total cost of the Army’s deal alone is around ₹40,000 crore, sources at HAL revealed.

In a separate contract, the Ministry also signed an agreement with Metrea Management for the wet leasing of a flight refueling aircraft (FRA) to enhance mid-air refueling training for IAF and Indian Navy pilots. Metrea will provide a KC-135 aircraft within six months, marking the first-ever wet leasing of an FRA by the IAF.

With these agreements, the MoD has now signed 193 contracts in FY24-25, pushing the total deal value past ₹2,09,050 crore—an all-time high and nearly double the previous record. Of these, 177 contracts, worth ₹1,68,922 crore, are dedicated to domestic companies, underscoring the government's push for self-reliance in defence manufacturing.

HAL will begin production of the LCHs at its Bengaluru facility before shifting to Tumakuru, Karnataka, to scale up production to 30 helicopters annually. The first deliveries are expected within three years, with all helicopters scheduled for completion in five years. This order boosts HAL’s order book to nearly ₹2 lakh crore.

The LCH, conceived in response to operational needs identified during the 1999 Kargil War, is India's first indigenously designed combat helicopter capable of operating at altitudes above 5,000 meters. The project involves over 250 domestic suppliers, primarily MSMEs, and is expected to generate more than 8,500 direct and indirect jobs. The MoD aims to achieve over 65% indigenous content in the helicopter’s production.

HBL