The Nashik production facility of Hindustan Aeronautics Limited at Nashik could shut down if no new orders are placed reports a US based defence news website.
According to the report, this may lead to a domino effect that could see 400 local suppliers shut their shops over a lack of component orders.
HAL Nashik will complete the production of the remaining 8 Sukhoi Su-30MKI fighters on order by March. An executive with the Federation of Indian Chambers of Commerce & Industry, said 400 local suppliers that build about 6,000 components worth $12.5 million for each Sukhoi Su-30MKI fighter may also shut down if no new orders are placed with HAL.
HAL produces about 12 Sukhoi Su-30MKI multi-role fighters each year. The company is expected to complete the delivery of 272 Su-30MKI fighters by March 2020.
Another HAL executive said a formal request has been sent to the Indian Air Force and the Ministry for Defence that they place an additional order for 72 locally made Su-30MKI fighters for about $5 billion, but the government has not yet made a decision the report further added.
Each Su-30MKI is built by HAL for approximately ₹ 492 crores under license by Russia’s United Aircraft Corporation.
However, in Nov 2018, HAL CMD R Madhavan said the company’s Nashik factory would not be shut down, but admitted there will be shortage of workload there after 2021, which would be solved by “re-arranging its priorities.”
Madhavan said HAL would focus on continuity of business and develop vendors to avoid producing everything in-house.
“We will have shortage of workload in our Nashik factory after 2021, but we are re-arranging our priorities there. So, contrary to what people have been thinking, the unit is not going to shut down,” he told reporters.
Source : Indiadefencenews