SOURCE: AFI
Hindustan Aeronautics Limited (HAL), India’s state-owned aerospace and defense company, found itself under renewed scrutiny in Parliament on Thursday, March 27, 2025. Already grappling with backlash over significant delays in the production of the indigenous Tejas fighter jets and the grounding of over 330 Dhruv Advanced Light Helicopters (ALHs) for safety checks following a crash on January 5, HAL faced a barrage of criticism from the parliamentary committee on public undertakings. The committee’s scathing report highlighted prolonged project timelines, escalating costs, and missed strategic opportunities, accusing HAL of systemic inefficiencies that undermine its ability to meet the operational demands of India’s armed forces.
HAL’s flagship Tejas Light Combat Aircraft (LCA) program, intended to bolster the Indian Air Force’s (IAF) fighter fleet with a homegrown solution, has been plagued by delays since its inception. Despite achieving initial operational clearance in 2013 and full operational clearance in 2019, the delivery of Tejas jets has consistently fallen short of timelines, leaving the IAF reliant on aging aircraft like the MiG-21. The committee pointed to poor planning and execution as key factors, noting that the delays have compromised India’s defense preparedness at a time of heightened regional tensions.
The grounding of the Dhruv ALH fleet added fuel to the fire. Following a crash on January 5, 2025, which raised concerns over safety and reliability, over 330 helicopters—used extensively by the Army, Navy, Air Force, and Coast Guard—were subjected to rigorous safety inspections. While HAL has maintained that the move was precautionary, the incident has further dented confidence in the company’s ability to deliver dependable platforms.
In its report, the parliamentary committee did not mince words, slamming HAL for what it described as “systemic inefficiencies” that continue to hobble its performance. “HAL’s prolonged project timelines, impaired costs, and missed strategic opportunities have hindered its ability to meet the operational demands of the armed forces effectively,” the report stated. The committee emphasized that these shortcomings not only affect national security but also erode India’s ambitions of becoming a global player in defense manufacturing.
The report called for sweeping reforms, urging HAL to adopt “rigorous adherence to pre-project processes, enhanced risk assessment mechanisms, and structured stakeholder engagements.” It argued that such measures are non-negotiable if HAL is to achieve competitiveness on the global stage and fulfill its mandate of supporting India’s self-reliance in defense production under the “Make in India” initiative.
Compounding HAL’s woes, the government announced on the same day the removal of import duties on electric vehicles (EVs) and 28 other items. While this move is aimed at boosting domestic manufacturing and attracting foreign investment, it indirectly underscores the pressure on indigenous manufacturers like HAL to step up their game. With imported defense equipment potentially becoming more affordable, HAL faces the dual challenge of proving its cost-effectiveness and reliability against international competitors.
HAL’s struggles are not new, but the convergence of these issues—Tejas delays, Dhruv groundings, and parliamentary censure—marks a critical juncture for the company. Once hailed as a cornerstone of India’s defense industrial base, HAL now risks losing credibility unless it can address these persistent challenges. The Tejas program, for instance, remains a symbol of India’s technological potential, but its slow rollout has frustrated military planners who see it as a vital replacement for retiring aircraft.
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