HAL’s ₹62,500 Crore LCH Deal to Boost Indian Defence Industry with 40% Work for Private Sector

India’s defence sector is poised for a major leap in self-reliance as Hindustan Aeronautics Limited (HAL) prepares to roll out 156 indigenously developed Light Combat Helicopters (LCH) for the Indian Army and Air Force. This landmark ₹62,500 crore deal, recently cleared by the Cabinet Committee on Security and signed on the same day, is not only significant for the armed forces but also a game changer for private industry involvement in defence production.

In a major policy shift, HAL is planning to outsource a massive 40% of the project—worth nearly ₹25,000 crore—to Indian private companies. This is similar to the approach taken in the Light Combat Aircraft (LCA) Tejas programme, where HAL partnered with companies like Larsen & Toubro and Vem Technologies to build key aircraft components such as the fuselage and wings.

For the LCH programme, HAL is expected to issue tenders soon, inviting the private sector to take part in manufacturing key components and systems of the helicopters. This move is not just about speeding up production, but also about strengthening the defence ecosystem by giving domestic companies a larger role in national security projects.

The helicopters will be assembled at HAL’s facilities in Bengaluru and Tumkur, both in Karnataka. These modern plants are equipped with advanced infrastructure and are part of HAL’s long-term expansion plans aimed at handling high-volume, indigenous defence orders.

The Light Combat Helicopter, designed and developed by HAL, is a state-of-the-art multi-role platform capable of performing in high-altitude warfare, anti-armour operations, and counter-insurgency missions. It is already proven in operations and has shown excellent performance in tough terrain, including deployments in the Ladakh region.

Defence Minister Rajnath Singh recently witnessed the delivery of the first rear fuselage for the LCA Mk1A, manufactured by a private firm—Alpha Tocol Engineering Services. This milestone reflects the growing trust and capability of India’s private industry to deliver world-class aerospace components.

HAL, the backbone of India’s aerospace and defence manufacturing, is now actively pursuing deeper collaboration with private companies to promote self-reliance under the 'Atmanirbhar Bharat' vision. With an order book exceeding ₹2 lakh crore and future orders worth ₹70,000 crore in the pipeline, HAL’s expansion is expected to create thousands of jobs, fuel innovation, and reduce the country’s reliance on foreign defence imports.

Currently, HAL is also working on other significant contracts, including 12 Su-30MKI fighter jets and 83 LCA Mk1A aircraft—10 of which are trainer versions. This surge in indigenous defence production, combined with private sector integration, marks a turning point in India’s journey to becoming a global defence manufacturing hub.

The LCH deal is not just about helicopters—it’s about building a stronger, self-reliant, and technology-driven defence ecosystem that supports national security and economic growth simultaneously.