Stung by HAL’s eroding operational capabilities and fed up with the bureaucratic culture pervading the aerospace behemoth, IAF wants to take charge of HAL. But will the mere appointment of a three-star IAF officer as its CMD transform HAL into a world-class aviation company?

Media, bot h print and electronic, seems to be abuzz with the IAF’s call on the Ministry of Defence (MoD) to appoint one of its three-star officers (Air Marshal) as the Chairman and Managing Director (CMD) of Hindustan Aeronautics Limited (HAL), when the present incumbent Ashok Nayak lays down office on October 31 this year. MoD sources confirmed the IAF’s request stating that the IAF had even proposed a specific name for the post if agreed to by the Ministry. The matter is under examination at the MoD, but no final decision has been taken as yet. Simultaneously, a panel of names has been reportedly drawn up to include bureaucrats from different organisations such as Pawan Hans, MSTC and of course, the MoD itself.

Not known for an elephantine memory, the media while supporting the IAF proposal —“As HAL’s biggest customer, it (IAF) has every reason to be worried that most projects being handled by the PSU, have been plagued by time and cost overruns” – has also labeled it revolutionary. IAF’s contention in forwarding the case to the MoD is that the HAL Chief should be someone who “understands aerospace concepts” and can “transform” HAL into a cutting-edge company, capable of delivering on time, to stem its fast eroding combat edge.

How far the IAF is dependent on HAL is evident from the fact that practically all combat fleets of the IAF are manufactured by HAL either through indigenous route or through licence-manufacturing. The ones that have been imported from foreign original equipment manufacturers (OEMs) directly are also routed through HAL. Some current examples include, manufacture of 180 Su-30 MKIs under a contract worth $3.2 billion ( Rs. 14,400 crore), indigenous light combat aircraft Tejas which may eventually total up to more than 200 aircraft worth more than $5 billion ( Rs. 22,500 crore) and licence-manufacture under transfer of technology of at least 108 aircraft under the MMRCA project with a total value exceeding $10 billion ( Rs. 45,000 crore). These are just a few examples but the story does not end here. There are examples of mid-life upgrades of most existing fleets starting from MiG-21 Bison at the lower end right through MiG-27, MiG-29, Jaguar, Mirage 2000 and even the Su-30 MKI where HAL has played or will be directly involved in the programmes as and when they get under way. HAL is also involved in the joint development and production of PAK-FA fifth generation fighter with Russia—a programme which may finally be worth more than $35 billion ( Rs. 1,57,500 crore). Other than the fighter fleets, HAL is in the middle of manufacturing under licence Hawk AJTs, developing the IJT as well as the indigenous basic trainer for the IAF. When one includes different types of helicopters and transport aircraft also in the scheme of things, the story appears to be endless.