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Hindustan Aeronautics Limited (HAL) announced the successful amendment of the Light Combat Aircraft (LCA) Initial Operational Clearance (IOC) contract with the Indian Air Force (IAF) on Wednesday. This revision reflects an increase in the contract value from Rs 2,700.87 crore to Rs 5,077.95 crore.

The original LCA IOC contract, signed in March 2006, has already been fulfilled. HAL delivered 20 LCA Tejas aircraft to the IAF under this agreement.

The amendment, sought by HAL in 2018, addresses changes in build standards for integration of the LCAs. These changes necessitated the procurement of additional components, including:

  • Line Replaceable Units (LRUs): These are self-contained modules that can be easily removed and replaced for maintenance or repair.
  • Raw materials: Essential materials used in the construction of the aircraft.
  • Composite materials: Advanced materials offering a combination of lightness, strength, and durability.
  • Bought-out items: Components procured from external suppliers.
  • Consumables: Materials used during the manufacturing process.
  • Tooling: Specialized equipment and jigs required for aircraft production.

This amendment ensures fair compensation to HAL for the additional work involved in meeting the revised build standards. It also reflects the evolving nature of military equipment and the need for ongoing upgrades to maintain operational effectiveness.