INDUSTRY PROFILE

Revolutionized by liberalization, the aviation sector in India has been marked by fast-paced change in
the past few years. From being a service that few could afford, the sector has now graduated to being a
fiercely competitive industry with the presence of a number of private and public airlines and several
consumer-oriented offerings. The market was galvanized a couple of years ago by the introduction of
lower price tags which ensured that people could travel at the fraction of the original price of air travel.
It was spurred further by the entry of Air Deccan, India's first budget airline, which offered hard-to-
believe tariffs. This was the trigger point for the sector to move from having simple economy, business
and first class fares, to multiple slab tariffs such as apex fares, internet auctions, special discounts, bulk
purchases and last day fares. Some of the tariffs offered are so low that they have brought airline fares
neck-to-neck with upper class railway fares. Little wonder then that the consumer prefers air travel to
the railways. The fare reduction has given the sector a huge boost with domestic and international traffic
growing by 24.2 per cent and 18 per cent, respectively in April-December, 2005. Private airlines now
account for 68.9 per cent of domestic traffic. The boom in the aviation sector in India can be gauged by
the fact that in one year, the number of people seeking pilot licenses has multiplied three times. In April
2005, it was 300. In April 2006, the number rose to 1045. In the last financial year, the civil aviation
industry has achieved the biggest ever growth in aircraft movement and passenger traffic. Passenger
traffic in the domestic airports increased by 22.3 per cent to 59.54 million, while aircraft movement
increased by 14.2 per cent to 730,000. Jet Airways tops the list of domestic and national carrier operators
with 8,168 flights operating till June 2005. Indian Airlines ranks second with 7,562 flights, followed by
Sahara (3,225 flights), Air Deccan (2,889 flights), Spice Jet (483 flights) and Kingfisher Airlines (267
flights). Aircraft manufacturer Airbus said, “India is one of the world’s most promising markets and it
is predicted that 100 million new urban middle-class consumers will become potential air travellers by
2010.” The increase in passenger traffic calls for upgraded infrastructure facilities. The international
airport in Delhi and Mumbai are being modernized and upgraded through private sector participation.
In the joint venture (JV), the Airports Authority of India (AAI) and other Government PSUs will hold
26 per cent equity. The balance 74 per cent will be held by the strategic partner. Foreign direct
investment (FDI) in this transaction has been capped at 49 per cent. In addition to these 10 non-metro
airports, AAI has identified 15 more non-metro airports, namely, Agatti, Aurangabad, Bhopal,
Bhubaneswar, Coimbatore, Indore, Khajuraho, Nagpur, Patna, Port Blair, Rajkot, Trichy, Vadodra,
Varanasi and Vizag, for development. In aviation industry fighter aircrafts are also one of the major
part. A fighter aircraft is a military aircraft designed primarily for attacking other aircraft, as opposed
to a bomber, which is designed to attack ground targets, primarily by dropping bombs. Fighters are
comparatively small, fast, and maneuverable. Fighter aircraft are the primary means by which armed
forces gain air superiority. At least since World War II, air superiority has been a crucial component of
victory in most modern warfare, particularly "conventional" warfare between regular armies, and their
acquisition and maintenance represent a very substantial proportion of military budgets in militaries
that maintain modern fighter forces. The history of fighter aircrafts can be divided into few eras like
after world war I, from 1919 to 1938, after world war II, then generation of jet fighters (1944-1953),
1953 to1960, 1960 to 1970, 1970 to 1990 and 1990 to present. India came into existence in this field in
1960 with the aircraft HAL HF-24 MARUT. India’s HAL TEJAS was also in the list of notable names.
ACQUISITIONS
The India story dominated the Paris Air Show in mid-2005 with several existing and yet-to be- launched
airlines surprising the world with hefty order announcements. The virtually unknown low-cost start-up,
IndiGo, lifted the tally of Indian deals to US$ 13 billion. The Delhi-based airline ordered a full fleet of
100 jets in the single-aisle A320 family.

 Low-cost carrier Spice jet signed a US$ 700-million deal for ten aircraft with Boeing, even as
Jet Airways and state-owned Air-India and Indian Airlines placed orders worth US$ 3 billion
for aircraft engines.
 General Electric said it had won an order worth more than US$ 2.2 billion from Air- India for
engines for the airline's new Boeing 777 and 787 fleets. The company said in a statement that
Air-India had placed an order for the GE90-115B engine for eight 777-200LRs and fifteen 777-
300ERs. In addition, the airline has ordered for the GEnx engine to power twenty seven 787-8
aircraft.
 Indian, as Indian Airlines is called now, signed a deal worth US$ 500 million with CFM
International to purchase engines for its newly acquired fleet of Airbus aircraft. The CFM56-
5b engine will power Indian's new fleet of 43 Airbus A320s scheduled for delivery between
late 2006 and 2010.
 The other deal at the world’s largest air-show was an order for A380 super jumbos and A320s
by Kingfisher Airlines. Domestic air travel in India is predicted to grow 20 per cent over the
next five years. Boeing has raised its 20-year market forecast for India for aircraft purchases
from US$ 25 billion to US$ 35 billion. Both Airbus and Boeing are waiting for the next big
order, expected from Air India. The airline is evaluating medium and large capacity aircraft and
is expected to order 50 wide-body jets, worth almost US$ 5 billion at list prices. The aviation
sector is likely to see the launch of many new airlines, including Premier Airways, Star Air and
East West Airlines this year. The first of these, Premier Airways, is formed by a group of ten
NRIs in the US. The airline will be based in Chennai.

NEW POLICY
The liberalization in civil aviation industry began in 1986 with the introduction if Air Taxi system to
boost development of tourism. Though there were several restrictions relating to seat capacity, airports,
timing and fare, the scheme was liberalized over a period of time. Even the fare was totally deregulated,
allowing air taxi operators to charge any fare. With Open Sky Policy many private operators began
operation in the domestic sector. The carriage increased from a modest 15,000 passengers in 1990 to
more than 0.4 million in 1992. Of the total of 12.23 million passengers carried on domestic sector,
private carriers carried about 5.7 million passengers. The civil aviation industry got a major boost with
the announcement of Airport Infrastructure Policy in November, 1997 which envisages development of
international hubs and regional hubs to provide a hub and spoke arrangement connecting all airports.
Under the policy, infrastructure development of airport has been opened up for public and private
participation. It allows 74% foreign equity participation in the airport infrastructure with automatic
approval and 100 % equity on case-to-case basis.
A new policy on domestic air transport has also been evolved. Salient features are:-

 40% foreign equity participation in domestic airlines,

 100% equity participation for NRIs/Overseas Corporate Bodies.
 Foreign airline equity, either directly or indirectly is not permissible.
 Operators to have freedom to determine fares for each sector.
 Domestic carriers to be allowed to fly international routes.
COMPANY PROFILE

Walchand Hirachand
(Founder)
The history and growth of the Hindustan Aeronautics Limited is synonymous with the growth of
Aeronautical industry in India for more than 77 years.
The Company which had its origin as the Hindustan Aircraft Limited was incorporated on 23 Dec 1940
at Bangalore by Shri Walchand Hirachand a farsighted visionary in association with the Government
of Mysore with an Authorised Capital of Rs.4 crores (Paid up capital Rs.40 lakhs) and with the aim of
manufacturing aircraft in India. In March 1941, the Government of India became one of the shareholders
in the Company holding 1/3 of its paid-up capital and subsequently took over its management in 1942.
In collaboration with the Inter Continental Aircraft Company of USA, Hindustan Aircraft Company
commenced its business of manufacturing of Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber
Aircraft.
In Dec 1945, the company was placed under the administrative control of Min. of Industry & Supply.
In January 1951, Hindustan Aircraft Private Limited was placed under the Administrative control of
Ministry of Defence.
The Company had built aircraft and engines of foreign design under licence, such as Prentice, Vampire
and Gnat aircraft. It also undertook the design and development of aircraft indigenously. In August
1951, the HT-2 Trainer aircraft, designed and produced by the company under the able leadership of
Dr. V.M.Ghatge flew for the first time. Over 150 Trainers were manufactured and supplied to the Indian
Air Force and other customers. With the gradual building up of its design capability, the company
successfully designed and developed four other aircraft i.e. two seater 'Pushpak' suitable for flying
clubs, 'Krishak' for Air Observatory Post(AOP) role, HF-24 Jet Fighter '(Marut)' and the HJT-16 Basic
Jet Trainer '(Kiran)'.
Meanwhile, in August 1963, Aeronautics India Limited (AIL) was incorporated as a Company wholly
owned by the Government of India to undertake the manufacture of the MiG-21 aircraft under licence.
In June 1964, the Aircraft Manufacturing Depot which was set up in 1960 as an Air Force unit to
produce the Airframe for the HS-748 transport aircraft was transferred to AIL. Soon thereafter, the
Government decided to amalgamate Hindustan Aircraft Limited, with AIL so as to conserve resources
in the field of aviation where the technical talent in the country was limited and to enable the activities
of all the aircraft manufacturing units to be planned and co-ordinated in the most efficient and
economical manner.
Amalgamation of the two companies i.e. Hindustan Aircraft Limited and Aeronautics India Limited
was brought about on 1st Oct 1964 by an Amalgamation order issued by the Government of India and
the Company after the amalgamation was named as "Hindustan Aeronautics Limited (HAL)" with its
principal business being design, development, manufacture, repair and overhaul of aircraft, helicopter,
engines and related systems like avionics, instruments and accessories.

Growth & Consolidation:

In 1970, a separate division was set up exclusively for manufacture of 'Chetak' and 'Cheetah' Helicopters
in Bangalore under licence from M/s SNIAS, France. A new division was also established to
manufacture aircraft instruments and accessories at Lucknow. Licence agreements were entered into
with M/s Dunlop of U.K. for Wheels and Brakes, Dowty for under carriages and Hydraulic equipment,
and Normal air Garret for cabin air pressurisation and air-conditioning equipment, Smiths of UK,
SFENA and SFIM of France for panel instruments and Gyros, Martin Baker of UK for ejection seats
and Lucas for engine fuel systems, for fitment on Marut, Kiran, Ajeet, Chetak, Cheetah and Jaguar.
Similar type of arrangements was agreed with USSR authorities for manufacture of accessories for
MiG-21 series of aircraft.
Design and Development of Basant agricultural aircraft was undertaken between 1970 and 1974 and
design and development of Ajeet, an improved version of Gnat was undertaken between 1972 and 1980.
In 1976 projects were sanctioned for design & development of the HPT-32 elementary piston engine
trainer, Kiran MK II (an improved version of Kiran MK I / IA) and Ajeet Trainer as well as for
Advanced Light Helicopter.
In 1971, Avionics Design Bureau at Hyderabad was formed for the development and manufacture of
IFF, UHF, HF, Radio components, Radio Altimeter, Ground Radars etc.,
During 1973, a Design wing was set up at Lucknow for design and development of accessories such as
under-carriage and hydraulic systems, air-conditioning and pressurization systems, fuel control/gauging
systems, generator control and protection units, static inverters etc.
In 1979, after seeking a licence agreement with British Aerospace, the Company started manufacture
of 'Jaguar' aircraft and with Rolls Royce-Turbomeca for Adour engines. Licence agreements were also
signed with different firms for manufacture of Avionics and accessories.
In 1982, the Company entered into an agreement with USSR and started production of Swing-wing
MiG-27M aircraft as a follow on project for MiG-21 BIS at Nasik Division of the Company.
During 1983, Korwa Division of HAL in District Sultanpur (U.P.) was established for manufacture of
Inertial Navigation System (INS), Head up Display and Weapon Aiming Computer (HUDWAC),
Combined Map and Electronics Display (COMED), Laser Ranger and Marked Target Seeker
(LRMTS), Auto Stabiliser and Flight Data Recorder for Jaguar and similar advanced systems for MiG-
27M.
HAL is actively engaged and is contributing to the space programmes of the country. A separate
Aerospace division was established in 1988. This Division is dedicated to space programme to meet
the growing requirement of Indian Space Research Organisation.
In order to capture the growing market in the industrial gas turbine engines, a new Division called the
Industrial & Marine Gas Turbine Division, was formed in 1998. Currently the Division is undertaking
Repair and Overhaul work related with Industrial Avon Engines and Industrial 501K and 571K series.
In addition, manufacture of LM 2500 engine is also being undertaken. The Division is doing the
overhaul of various existing gas turbines in the country, thus providing cost-effective services to users
such as ONGC, GAIL, TNEB, RSEB etc., for upkeep of their gas turbine.
An independent profit centre for providing Airport related services was created in May 2000 with a
view to synergize the operation of HAL Bangalore Airport. The main aim of creation of this Airport
Service Centre is to restructure the existing resources to provide focused attention in relation with the
exacting market needs of service segment related to airlines operations and commercially exploit the
available infrastructure of the Company at Bengaluru.
With the signing of agreement with Russian partners to take up licence manufacture of SUKHOI 30
MKI Aircraft the Nasik Division which had been engaged in manufacture & overhaul of MiG series
Aircraft, had to be expanded. Accordingly it was decided in February, 2002 to have two Divisions at
Nasik i.e. Aircraft Manufacturing Division for Su-30 MKI production and Aircraft Overhaul Division
for overhaul and upgrade of existing MiG Series aircraft.
Consequent on decision to manufacture AL 31 FP Engine for SU 30 MK1 Aircraft, under licence from
Russian Manufacturer, it was decided to establish a new Division at Koraput to take up the project in
February, 2002. The project activities under the new Division have accordingly commenced.
In order to facilitate Helicopter Division to dedicate itself exclusively for ALH manufacture and related
activities, the manufacturing and repair / overhaul activities of Chetak and Cheetah helicopters and their
variants were transferred to the Barrackpore Branch Factory and Barrackpore Division was formed and
a new MRO Division created to carry out ALH Overhaul activities in 2006.
Composites material is being used extensively in aircraft manufacturing for its low weight. A new
Aircraft Composite Division (ACD) was formed in Mar 2007 with a dedicated manufacturing facility
for composite materials for in-house projects such as ALH, LCA etc.
Facilities Management Division was created in Dec 2007 for effective and focused attention towards
the common services at Bangalore.
In order to boost R & D activities in-house, Mission & Combat System R & D Centre was formed to
concentrate on Mission systems, Aircraft upgrades and technology development in Nov 2008.
Additionally, Strategic Electronics Factory at Kasaragod, Kerala, a unit of HAL Hyderabad, was
established in Nov 2012.
The in house development of Light Combat Aircraft (LCA) will give major boost to the modernization
program of our Defence Services. For production of LCA, a separate LCA Tejas Division was
established at Bangalore for production of Light Combat Aircraft in Mar 2014.

Complexes of HAL:
HAL has various complexes such as:
1- Bangalore complex
2- MIG complex
3- Accessories complex
4- Design complex

Divisions of HAL
1- Bangalore complex
a- Aircraft division - manufacturing jaguar aircrafts
b- Engine division - manufacturing jaguar engines
c- Helicopter division - manufacturing helicopters
d- Forge and foundry division - manufacturing high precision casting and forging
e- Overhaul division - overhaul of jaguar and other engines
f- Space division - manufacturing of launching of pads and common satellites
g- Servicing division - for common services to all divisions

2- MIG Complex
a- Nasik division - manufacturing and overhaul of air frames
b- Koraput division - manufacturing and overhaul of MIG engines

3- Accessories Complex
a- Hyderabad division - manufacturing of electronics and navigational equipment
b- Kanpur division - manufacturing of passenger aircraft and gliders
c- Lucknow division - manufacturing of hydraulic pumps, fuel pumps and stator generator
d- Korwa division - manufacturing of advanced navigational equipment

4- Design complex
a- Bangalore division- modification of any component or unit of an engine
The above are the various divisions of HAL across the country.
Products of HAL:
AIRCRAFTS
LCA-Tejas: Tejas is a single engined, light weight, highly agile, multi-role supersonic fighter. It has
quadruplex digital fly-by-wire Flight Control System (FCS) with associated advanced flight control
laws. The aircraft with delta wing is designed for ‘air combat’ and ‘offensive air support’ with
‘reconnaissance’ and ‘anti-ship’ as its secondary roles. Extensive use of advanced composites in the
airframe gives a high strength to weight ratio, long fatigue life and low radar signatures. Aeronautical
Development Agency is the designated project manager for the development of LCA.
HAWK: The Hawk is a tandem-seat Aircraft for ground attack, flying training and weapon training. It
has a low wing and an all-metal structure and is powered by an Adour Mk 871 turbofan engine. The
Aircraft has an integrated navigation /attack system and radio and inertial navigation systems. The
Aircraft is cleared for instrument (IFR) flying and for Solo Instrument flying from the front cockpit
only.
SU 30-MKI: Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority Aircraft.
IJT: The Intermediate Jet Trainer (IJT) christened as HJT-36 is indigenously designed and developed
by HAL to replace ageing fleet of KIRAN Jet Trainer aircraft in service with Indian Air Force for Stage
II training of its pilots. IJT will be fitted with AL-55i Jet engines produced in house at Engine Division
Koraput. IJT incorporates the simplicity necessary for ease of conversion from Basic Piston Trainer and
the sophistication required for quick conversion to the complexities of an Advanced Jet Trainer.
DORNIER: The 19 seater HAL - DO - 228 aircraft is a highly versatile multi-purpose light transport
aircraft. It has been developed specifically to meet the manifold requirements of utility and commuter
transport, third level services and air-taxi operations, coast guard duties and maritime surveillance.

HELICOPTERS
CHETAK: HAL, Helicopter Division started manufacturing of helicopters in 1962, by entering an
agreement with M/s SUD-AVIATION (Presently M/s AIRBUS (Former EUROCOPTER), France) for
production of Aloutte III helicopters (Chetak). The first Chetak (Aloutte III) in ‘Fly Away’ condition
delivered in 1965. The Chetak Helicopter is a two ton class helicopter. The seven seater Chetak
helicopter is versatile, multi role, multi-purpose, and spacious. The helicopter is powered by Artouste
- III B turbo shaft engine. The helicopter is suitable for commuting, cargo / material transport, casualty
evacuation, Search & Rescue (SAR), Aerial Survey & Patrolling, Emergency Medical Services, Off-
shore operations and under slung operations. Till date, HAL has produced and sold more than 350 of
these versatile Helicopters which are in service both in India and abroad. Recently, HAL has received
orders for Chetak helicopters from MOD Namibia & MoD Suriname.
CHEETAH: HAL signed license agreement for Cheetah with M/s SNIAS in 1970. First Cheetah
manufactured from raw materials was delivered in 1976-77. The Cheetah Helicopter (identical to
LAMA SA 315B Helicopter of Eurocopter, France) is a high performance helicopter designed for
operation over a very wide range of weight, centre of gravity and altitude conditions. The five seater
Cheetah helicopter is versatile, multi role, multi-purpose, highly manoeuvrable and rugged in
construction. It holds the world record in high altitude flying among all categories of Helicopters. The
helicopter is powered by Artouste - III B turbo shaft engine. The helicopter is suitable for commuting,
observation, surveillance, logistics support, rescue operations and high altitude missions. Till date, HAL
has produced and sold more than 275 of these versatile Helicopters which are in service both in India
and abroad. Recently, HAL has received orders for Cheetah helicopters from MoD Namibia.
DHRUV: The indigenously designed and developed Advanced Light Helicopter (ALH-DHRUV) is a
twin engine, multi-role, multi-mission new generation helicopter in the 5.5 ton weight class. The basic
Helicopter is produced in skid version and wheeled version. Dhruv is “type –Certified” for Military
operations by the Centre for Military Airworthiness Certification (CEMILAC) and civil operations by
the Directorate General of Civil Aviation (DGCA). Certification of the utility military variant was
completed in 2002 and that of the civil variant was completed in 2004. The deliveries of production
series helicopters commenced from 2001-02 onwards. A total of 228 Helicopters have been produced
by March 2017 including 216 for the Indian Armed Forces. The major variants of Dhruv are classified
as Dhruv Mk-I, Mk-II, Mk-III & Mk-IV.
RUDRA: Rudra is the Weaponised version of the Advanced Light Helicopter (Dhruv) designed and
developed by Hindustan Aeronautics Limited (HAL) to meet the requirements of Indian Army & Air
Force. The multi role helicopter of 5.8 Ton class is powered by two Shakti Engines.
CHEETAL: Cheetal is the re-engined version of the Cheetah helicopter. The project initiated during
2002 and aimed to enhance high altitude operational capabilities and maintainability as well as to
provide a mid-life upgrade for safe & reliable operations. Artouste-IIIB engine of Cheetah was replaced
with the modern fuel efficient TM333–2M2 engine with FADEC for better performance. In addition,
an automatic Backup Engine Control system (EBCB) is equipped with engine.
LANCER: In 1990s, HAL has developed a light attack helicopter “LANCER”. The Lancer Helicopter
is a light attack helicopter developed by Hindustan Aeronautics Limited as a cost-effective airmobile
area weapon system.

The basic structure of the lancer is derived from reliable and proven Cheetah helicopter. The helicopter
has bullet proof front panels and crew seat.

FUTURE PRODUCTS
LCH: Light Combat Helicopter (LCH) was proposed to meet IAF’s requirement of a dedicated light
helicopter for combat operations. LCH has maximum possible commonality with ALH. LCH with a
narrow fuselage has pilot and co-pilot/gunner in tandem configuration incorporating a number of stealth
features, Armour protection, Night attack capability and crash worthy landing gear for better
survivability.
LUH: LUH is designed and developed as a replacement for Cheetah & Chetak helicopters which are
being operated by Indian Armed forces. LUH is a new generation helicopter in the 3-Ton class
incorporating the state of the art technology features like Glass cockpit with Multi-Function Displays
(MFD) and powered by single Turbo Shaft engine with sufficient power margin to cater to demanding
high altitude missions. LUH will meet the emerging needs in this class of helicopters in the coming
decades. The helicopter will be capable of flying at 220 Kmph; service ceiling of 6.5 Km and a range
of 350 Km with 500 kg payload.
FGFA (Fifth generation fighter aircraft): The proposed FGFA will have air combat superiority, high
tactical capability, group action capability in the regions even with poor communication support. The
aircraft will have advanced features like.

 Increased Stealth
 Supersonic cruise
 Data link and network centric warfare capability.
FGFA will be co-developed with Russians. Sukhoi Design Bureau (SDB) has been selected as the
Russian agency for this development project.
MTA: Co-development and co-production of Multi-role Transport Aircraft, jointly by Russian partners
and HAL, is being launched to meet the requirement of Russian and Indian Air Forces. The aircraft will
be designed for the roles of a 15-20 ton Cargo / Troop transport, Para trooping / Airdrop of supplies
including Low Altitude Parachute Extraction System (LAPES) capability. It will be configured such
that all types of cargo can be transported and the aircraft would be capable of operating from semi
prepared runways.

HTT-40: Basic flying training, Aerobatics, Instrument, Flying, Navigation, Night Flying, Close
formation

IMRH: The preliminary design of 10 Ton IMRH has been taken up to meet the requirement of the
Indian Defence Services. Dedicated versions to meet the requirements of Airforce / Army as well as
Navy are planned. The helicopter will be powered by twin engines and will feature blade folding option
for ship deck operations. The intended roles of IMRH are to support air assault, air transport, combat
logistics, combat search & rescue and casualty evacuation operations.

MMRCA: Medium multirole combat aircraft

UAV: Unnamed aerial vehicle
ADOUR MK 871: Jaguar Aircraft is powered by two Adour MK 804 / MK 811 Engines. MK 811
Engines are manufactured from 1981 under licence from RR/TM [Rolls Royce Turbomeca ]. Adour
MK 804 Engines are also overhauled and repaired under the above licence. Adour Engine is a bypass
Jet Engine of modular construction. The Adour has two-stage low pressure and five-stage high pressure
axial flow Compressors which are driven by separate, single stage high pressure and low pressure
Turbines connected through co-axial shafts, with low pressure shaft passing through high pressure shaft.
GARRETT TPE 331-5: The Garrett TPE 331-5 Turbo prop Engine is being manufactured, overhauled
and repaired for various Customers under licence from Garrett Engine Division of Honey Well
Company [earlier Allied Signal Aerospace Company, USA] since 1988 and belongs to one of the most
popular series of small Turbo prop Engines powering a large number of Commuter and Corporate
Aircraft such as Dornier DO-228. It has a single shaft Centrifugal Compressor Engine rated at 715 shaft
horse power at 1591 RPM output speed. Being a reverse flow Gas Turbine with a small frontal area, it
has better dry specifics and easier airframe integration. Apart from its simplicity of design and superior
performance, the engine features a propeller control system, anti-icing and foreign object damage
resistance, reverse thrust and negative torque sensing facilities. The division is also an authorised
service centre for Garrett TPE 331-5 series engines up to - 12.

RD 33: The RD-33 aircraft engine is a two-shaft turbofan engine comprising 11 modules. The engine
consists of the following main parts: a 4-stage low-pressure compressor, 9-stage high-pressure
compressor, annular ramjet combustor, high and low pressure turbines, supersonic variable-area nozzle
and afterburner, accessory gear box, and an engine starting and control system. The engine is equipped
with failure detection systems, compressor speed governor and LP turbine exit temperature limiter,
surge, ice and fire detectors.

AL 31 FP: AL-31FP is a high temperature turbojet by-pass engine of modular design. A specific feature
of AL-31FP is an axi-symmetric vectoring nozzle with a thrust vector angle of ±15° in the vertical plane
providing super manoeuvrability of the aircraft. The vectoring nozzle control is integrated with the
engine control system. AL-31FP engines ensure stable operation in all available evolutions of the
aircraft in super manoeuvrability modes. AL-31FP engines power advanced multipurpose Su-30
MKI fighters of the 4+ generation
SHAKTI: HAL and Turbomeca have had a long history of joint industrial helicopter development in
India, going back to the 1960s. In 1961, Turbomeca granted a manufacturing license for the Artouste
turboshaft engine to equip the Indian Chetak and Cheetah helicopters. The development of the
Shakti/Ardiden 1H project was initiated in 1999 by the two companies to power the HAL
Dhruv helicopter. However, several factors including the US embargo following India's 1998 nuclear
tests forced the project to run behind schedule. Hence, early models of the Dhruv used the less
powerful Turbomeca TM 333-2B2 engine as a contingency. The first test flight of the Dhruv with the
new Shakti engine took place on 16 August 2007.[1] By late 2007, HAL started fitting the Shakti engines
for Dhruvs produced from then. The Ardiden 1H series engines have a radial air intake and a two-stage
centrifugal compressor driven by a single stage axial gas generator turbine. Airflow is directed through
a reverse flow annular combustion chamber, through the gas generator turbine and then through and a
two-stage axial free power turbine. Output power is transmitted to a front-mounted reduction gearbox
by a shaft concentrically mounted within the gas generator rotor assembly. The accessory gearbox, also
mounted at the front end, is driven by the gas generator. Control is by means of a dual-channel digital
engine electronic control unit (DECU).

ARTOUSTE III B: Artouste III B Engine powers both Cheetah and Chetak Helicopters. Manufacture
of the Engine commenced in 1962 under licence from Turbomeca, France. The Engine has side air
intake, one axial and one centrifugal compressor connected to a three-stage Turbine. The power output
is 550 SHP at 33500 RPM. The reduction Gearbox in the front transfers the power to Helicopter. More
than 665 Engines have been manufactured and 2950 Engines overhauled and repaired for various
Customers.

PTAE-7: Designed and developed by the Engine and Test Bed Research and Design Centre, Engine
Division, HAL, Bangalore, the jet engine will power the pilotless target aircraft, Lakshya, developed
by the ADE. PTAE-7 is a single shaft, lightweight, low-cost, short-life engine. The engine comprises a
four-stage transonic axial compressor, a single-stage turbine, an annular flow combustion chamber and
16 fuel flow burners. The PTAE-7 develops a thrust of 380 kg.f at ISA sea level static conditions with
a specific fuel consumption of 1.15 kg./kg.f/hr. It has a length of 1,270 mm. and a maximum diameter
of 330 mm., and weighs 65 kg. The engine is designed with materials and features for protection against
seawater corrosion so that it can be used again after its recovery from sea.

LM 2500: Light weight and compact with high thermal efficiency. Used for naval vessels and
commercial ships as well as industrial applications. The LM 2500 which has been derived from the TF
39 Military and CF 6 commercial aircraft engine family is a compact, high performance turbine for
marine propulsion systems and industrial power plants. In order to provide maximum reliability,
increased life of parts and outstanding performance it incorporates the latest development in design
technology and corrosion resistant material for engine components. The LM 2500 Gas Turbine has been
selected by 24 naval establishments of the free world and powers a broad spectrum of ships ranging
from 230 tons to 55,000 tons displacements. This gas turbine has also other applications such as power
generation, compressor application. ONGC Mumbai has 5 of these units operating in its off-shore
platforms.

AVIONICS
 Inertial navigation system
 Auto stabilizer
 Head up display
 Laser range system
  Flight data recorder
 Communication equipment
 Radio navigation equipment
 Air borne secondary radar
 Missile inertial navigation
 Radar computers
 Ground radars

SYSTEM AND ACESSORIES

 Hydraulic system
 Wheels and break system
 Flight control system
 Ejector release unit
 Panel instruments
 Gyroscopic/Barometric instruments
 Oxygen system
 Fuel management system
 Hydraulic pumps

AEROSPACE
 Structures
 Tanks
 Cryogenic engines

Aerospace Division is engaged in the manufacture of Aluminium alloy riveted structures and welded
tankages of conical, cylindrical and other shapes with different types of detailed parts such as sheets,
rings, brackets, stiffeners, bulkheads, panel bolts, nuts, rivets etc. Some of the important structures
manufactured are Heat Shield Assembly, Nose Cone Assembly and Tank and Shrouds used in Satellites.
PSLV: (Polar satellite launch vehicle)

No. Of Stages: 4-Stage Rocket with Two Solid & Two Liquid Stages with 6 Strap-on Motors

Orbit: Low Earth Polar Orbit 900 km

Mission: Inject 1000-1200 Kg Class Satellite (IRS) In Polar Orbit

GSLV: (GEO-GEO-synchronous satellite launch vehicle) MK II

No. Of Stages: 3-Stage Rocket with Solid, Liquid and Cryo Stages with 4 Strap-on Motors

Orbit: Geo-Stationary Orbit 36000 km

Mission: Inject 2500 Kg Satellite INSAT Series in Geo-Synchronous Orbit

GSLV: (GEO-synchronous satellite launch vehicle) MK III

No. Of Stages: 2-Stage with Liquid and Cryo Stages and 2 Strap-on Motors

Orbit: Geo-Synchronous Orbit 36000 km

Mission: Inject 4500 – 5000 Kg INSAT Class Satellite, in Geo-Synchronous Orbit

Indian remote sensing satellite

Mission: Resource Survey & Management In the area of Agriculture, Forestry, Hydrology & Snow
Melting.

Launch Vehicle: PSLV

Orbit: Low Earth Polar Orbit 900 km

Life: 5 Years

Indian national satellite

Mission; National Tele-communication, TV Broadcasting, Radio Net Working, Meteorological

Observation Satellite Aided Research & Rescue

Launch Vehicle: GSLV

Orbit: Geo-Stationary Orbit 36000 km

Life: 7 Years
MATERIALS

 Castings
 General forgings
 Precision forgings
 Powder metallurgy
 Rubber products
 Rolled rings
 Composites

SUPPLIERS

 Jayems Engineering Company Mumbai

 Professional traders Panchakula
 Bombay tools supplying agency Mumbai
 Aero spares equipments Vishakhapatnam
 Atul enterprises Kolkata
 M.B.Corporation Vishakhapatnam
 Bhatia tools and technology Bangalore
 Mahr Gmbh Esslinger Germany
 Hitech INSTRUMENTATION Mumbai (India) pvt. Ltd.
 Romada Engineering works Mumbai
 Karthik Industries Chennai
 J.S. Precisions Bangalore
 M.H.M Tools Bangalore
 Srinivasa industries Hyderabad
 Metal cloth products Bangalore Bangalore
 Kamala precisions Hyderabad
 Aryan Aerospace tools Nasik
 ECP Indian limited Bangalore
 T.H.Habib & co. Kolkata
 Indian tools and instruments co. Mumbai
 Empire machine tools Mumbai
 Accurate sales & services pvt. Ltd. Pune
 Tools and tools (India) Kolkata
 Apex commercial corporation Kolkata
 Jai enterprises Bhilai
 K. Jagannadha Rao Vishakhapatnam
 Makaram marketing Bangalore
 Sri Sakti trading corporation Kolkata
 Sri Hanuman electric and trading co. Kolkata
 Belavadi tool room Bangalore
 Fujiyana tool tech. Hyderabad
 S.N. Tools Balasore
 Kalyani Engineering works Ghaziabad
 Titanium Tantalum products Chennai
 Modern Engraves Mumbai
 Pratibha industries Bangalore
 Chanakya wire tools Hyderabad
 Nagasai Hyderabad
INTERNATIONAL CUSTOMERS

 Airbus Industry, France

 Peruvian Air Force, Peru
 Rolls Royal Plc, UK
 Royal Air Force, Oman
 Royal Malaysian Air Force, Malaysia
 Royal Nepal Army, Nepal
 Royal Thai Air Force, Thailand
 Smiths Industries, UK
 Snecma, France
 Strongfield Technologies, UK
 The Boeing Aircraft Company, USA
 Transworld Aviation, UAE
 Vietnam Air Force, Vietnam
 APPH Bolton, UK
 BAE Systems, UK
 Chelton, UK
 Coast Guard, Mauritius
 Corporate Air, Nepal
 Corporate Air, Philippines
 Cosmic Air, Nepal
 Dassault Aviation, France
 Dowty Aerospace Hydraulics, UK
 EADS, France
 ELTA, Israel
 Gorkha Airlines, Nepal
 Hampson, UK
 Hoeneywell International, USA
 Island Aviation Services, Maldives
 Israel Aircraft Industries, Israel
 Messier Dowty Ltd., UK
 Mistubishi Heavy Industries, Japan
 MOOG, USA
 Namibian Air Force, Namibia

DOMESTIC CUSTOMERS

 Air India
 Air Sahara
 Airports Authority of India
 Bharat Electronics
 Boarder Security Force
 Coal India
 Defence Research and Development organisation
 Govt. of Andhra Pradesh
 Govt. of Jammu & Kashmir
 Govt. of Karnataka
 Govt. of Madhya Pradesh
 Govt. of Rajasthan
 Govt. of Uttar Pradesh
  Govt. of West Bengal
 Indian Air Force
 Indian Airlines
 Indian Army
 Indian Coast Guard
 Indian Navy
 Indian Space Research Organisation
 Jet Airways
 Kudremukh Iron company Limited
 NALCO
 Oil and Natural Gas Corporation Limited
 Ordnance Factories
 Reliance Industries
 United Breweries

JOINT VENTURES

 BAeHAL Software Ltd

 Indo Russian Aviation Ltd
 Snecma HAL Aerospace Pvt. Ltd
 Samtel HAL Display System Ltd
 HALBIT Avionics Pvt. Ltd
 HAL Edgewood Technologies Private Ltd
 Infotech HAL Limited
 HATSOFF Helicopter Training Pvt Ltd
 Tata HAL Technologies Ltd
 International Aerospace Manufacturing Private Ltd
 Multirole Transport Aircraft Limited
 Aerospace and Aviation Sector Skill Council
 Defence Innovation Organisation
 Helicopter Engines MRO Private Limited

AWARDS AND RECOGNITIONS

HAL has been conferred with several International & National Awards for achievements in Research
and Design, Technology, Managerial Performance, Exports, Energy Conservation, Quality and
Corporate Social Responsibility activities. Some of the awards are listed below:

 Raksha Mantri Award for Excellence in Performance under Institutional Category for the years
2007-08, 2009-10, 2010-11, 2012-13 and 2015-16 from Ministry of Defence, Government of
India.
 Raksha Mantri Award for excellence in performance (design effort) for AURDC for the year
2005-06(MiG-27 upgrade).
 Raksha Mantri Award for Excellence for Best Performance Exports under Institutional
Category for the year 2008-09 from Ministry of Defence, Government of India.
 Raksha Mantri Award for Best Performing Division among DPSUs for the year 2011-12, 2013-
14 and 2014-15 in the Category of Division/Factory/Shipyard Awards for HAL, Hyderabad
Division.
 MoU Excellence Award under Industrial Sector for the year 2008-09 by Ministry of Heavy
Industries & Public Enterprises, Government of India.
 SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management-
2011-12 Institutional Category I (Maharatna & Navratna PSEs) by President of India at the
Standing Conference of Public Enterprises .
 SCOPE Meritorious Award for R&D, Technology Development and Innovation for the year
2012-13.
 SCOPE Meritorious Award for Good Corporate Governance for the year 2014-15.
 Golden Peacock Eco-Innovation Award 2013 from the Institute of Directors.
 Golden Peacock Award for Corporate Social Responsibility in the year 2015 from the Institute
of Directors (IOD).
 Golden Peacock Innovative Product / Service Award for the Project “Combined Interrogator
and Transponder (CIT)” for the year 2016-17 instituted by the Institute of Directors (IOD).
 Performance Excellence Award for its Financial and Operational strength from Indian
Institution of Industrial Engineering (IIIE) for the years 2008-09, 2014-15 and 2015-16.
 IEI Industry Excellence Award 2013 for overall business excellence and industry practices by
the Institution of Engineers (India).
 IEI Industry Excellence Award 2014 for business excellence and industry practices in
manufacturing & processing (category – turnover of `1,000 crore and above) for the year 2014
by the Institution of Engineers (India)
 IEI Industry Excellence Award 2017 for demonstrating highest order of business excellence in
Manufacturing & Processing group by the Institution of Engineers (India).
 Declared Legend PSU of the Year in Navratna PSUs during the News Ink Legend PSU Shining
Award- 2013.
 Master Brand Award 2014-15 by CMO Asia and CMO Council.
 Global Green Award 2014 from Association Otherways Management & Consulting (France)
in Berlin, Germany.
 FICCI R&D Award 2015 by Federation of Indian Chambers of Commerce and Industry
(FICCI).
 India Pride Award 2014-15 for excellence in defence under public sector undertaking – central
category from Dainik Bhaskar Group.
 Star Performer Award for the year 2013-14 from Engineering Export Promotion Council
(EEPC) India in the product group miscellaneous transport equipment and parts (large
enterprise) during the 46th National Awards for Export Excellence.
 Best Manufacturer Exporter Award in “large category - Gold” in the year 2016 from Federation
of Karnataka Chambers of Commerce & Industries (FKCCI).
 2nd Corporate Governance Excellence Awards for the year 2015-16 under un-listed Public
Sector Company (More than Rs 500 crore turnover) by the Associated Chambers of Commerce
and Industry of India (ASSOCHAM).
 SKOCH Platinum Award & SKOCH Order-Of-Merit award for “Design & Development of
Light Combat Helicopter” by SKOCH Group for 2016.
 Aerospace and Defence Awards 2017 under the category of “Company of the year” by SAP
Media Worldwide Limited.
 SKOCH BSE Award & SKOCH Order-Of-Merit Award 2017 on Corporate Excellence for
“Integration of BrahMos Missile on SU-30 MKI Aircraft” by SKOCH Group.
 SKOCH Order-Of-Merit award for “Kumudavathi River Rejuvenation” Project by SKOCH
Group for 2017.
 CISO Platform Award 2017 for companywide implementation of Active Directory with
innovative features.
 “BSE CIO Klub Award 2017” for implementation of Make in India Portal
 Sustainability Awards 2017 in recognition of Quality Management under the Category of
“Secondary Processing / Fabrication Plants of Non-Ferrous Product” by Indian Institute of
Metals (IIM).
ORGANIZATIONAL PROFILE OF HAL, ENGIE DIVISION, KORAPUT

ORIGIN AND HISTORY:

An agreement was signed in August, 1962 with the Soviet Union for manufacture of MIG-21 E7FL
Aircraft under license the Aero engine factory at Koraput (Orissa), the Air frame factory at Nasik
(Maharashtra), and the Avionics factory at Hyderabad (Andhra Pradesh) have been set up to meet this
requirement on the name of Aeronautics India Limited which was formed on April 1964 and new
company under three name of Hindustan Aeronautics Limited was formed. The Government sanction
for the first phase of construct of the aero engine factory at Sunabeda (Koraput) was accorded March
1964 and the factory started manufacture of R11F2 Series-JJJ engines for the fitment of MIG-21FL
Aircraft from 1969 onwards. The first engines of imported category manufactured in December 1968
and various category of engines were produced during the subsequent years. The first raw material
engine was produced in February 1971. The production programmes for the factory also include
manufacture of forgoing and casting required for MIG-Aircraft. To meet the Air force requirement for
improved fight interceptor Aircraft, an agreement was signed with USSR in August 1976 for
manufacturing MIG-21BJS Aircraft. The power plant of this Aircraft is the R25 Turbojet engine. The
government approval for setting up capital facilities was accorded in October 1977. The first engine of
imported category delivered to HAL, Nasik Division in the year 1978-79. The FJ raw material engine
was delivered during January 1983. With signing the inter Government agreement for manufacture of
MIG 27M Aircraft on 19th March 1982. This Division would be involved in the manufacture of R29b
series of engine from the year 1984-85.

In order to attain self-sufficiency to avoid difficulties regarding supply of raw material and other layout
items from USSR, it was decided to provide indigenous supply of spares manufacturing for
overhaul/maintenance of the fleet. The government approval for undertaking the tax received during
1977-78 and the indigenous plan was formed to tackle.

 ARS and first moving spares

 Metallic Material
 Non-metallic material
 Ready-made articles.

The activities towards this area being progressed as per the approved time frame. A corporate plan of
this division for the next 10 years has been worked out basing on his delivery/production tasks indicated
to us. The total man power of this division has increased from 378 during 1965-66 to 3522 as on 31st
March 1982. The man power potential of this division will go further ahead in the years to come in light
of corporation plan.

GEOGRAPHICAL LOCATION OF HAL, KORAPUT:

While installing an industry, the entrepreneur has to choose the location properly, considering the pre-
requisite like availability of land, labour, power, raw materials and communication facilities. if these
factors are taken as unit of measuring rod the company (HAL), Koraput Division is located in a very
advantageous position. This company is situated in sunabeda IN Koraput district, Orissa that is about
130 KM from Vizianagaram. The river ―Karandi‖ which act as a perennial source for supplying water
is flowing from northern side to HAL, Koraput division and Sunabeda. More over the factory is adjacent
to the national highway no.-43 linking Vishakhapatnam- Raipur. The nearest railway link is at Koraput
(16 KM from Sunabeda). An airfield is located at Jeypore, 39 KM from Sunabeda. There is a helipad
facility at HAL Township and also a proposed for construction of a preeminent airfield is under
progress.

The location of the factory has got many advantages. The hilly area of Koraput district is highly strategic
from defence point of view. The dense forest provides the factory from aerial view from the thick angle
on enemy plane. May this be the location of the plant, supply of power from Orissa Electric Board,
which has a separate grid.

HAL harbour is available at cheap rate. The atmosphere of Sunabeda is cold and is less populated and
less polluted which is an extra advantage.

CORE BUSINESS OF HAL (KORAPUT DIVISION):

HAL’s core business is as follows:

 Design and development of fixed and rotary wings aircraft, avionics and accessories.
 Export of aero structures to leading world Aircraft manufactures for their Aircrafts.
 Manufacture of structural components for satellites, launch vehicles and missiles.
 Design consultancy.
 Design and extension of military, civil updates.
 Modernization, manufacture, maintenance, repair and overhaul of fighter and trainers aircrafts.
 Commercial and transport Aircrafts, Helicopters, Aero engines, Industrial and marine gas
turbines.
 Ground support equipment (GSE)
 Accessories (Mechanical/Electrical/Fighter control/Fuel)
 High technology castings, forging fiber composite parts, Aircrafts transparencies, powered
metallurgy.

PRODUCT LINES OF HAL (KORAPUT DIVISION):

RD 33

AL 31 FP: The Engine Division at Koraput, a unit of HAL's vast network, has the unique distinction
of being one amongst the few Aero Engine manufacturers in the world. The spectrum of manufacturing
facilities extends literally from the production of nuts and bolts to discs, shafts, blades, forgings and
castings - all that are required to make an Aero Engine right from the Raw materials. This spectrum is
further enlarged to include overhaul of Aero Engines for the MiG family and supply of spares required
during service

R25 engine: This is a Twin Spool, Axial Flow, Turbojet Engine fitted with After burner and a variable
area Jet nozzle. It powers the MiG-21 BiS multi-role Fighter Aircraft. The Engine has provision for an
emergency After-burner thrust boost, which can be selected below 4.5 KM altitude.
R-29B engine: This Engine is a Twin spool, Axial flow Turbojet Engine incorporating After-burner
system and variable area Jet nozzle of convergent-divergent type. The Engine is equipped with
automatic Fuel regulation system, Turbo-starter, Anti-surge system, Temperature controller, Constant
speed drive for AC Generator and Two speed drive for Hydraulic Pump. R-29B Engine powers MiG-
27 M, a Multi-role Ground attack / Air combat Aircraft.

Precision Components: The Division also produces precision components like: total gamut of Blades
ranging from Compressor Rotors and Stators to Turbine Blades and Nozzle Guide Vanes, intricate
Cored Magnesium Alloy Gear Casings, Compressor and Turbine Discs and Shafts, JIS class-l/DlN 5
Spur, Helical Gears and DIN 6 straight and Hypoid / Spiral Bevel Gears ranging from module 1 to 6.

Repairs, Major Servicing, Supply of Spares

Since the early 1970's, the Division has been overhauling Aero Engines to make fighter Aircraft flight-
worthy again for the Indian Air Force.

The Division follows the 'Flow Line Group Technology' with the Engine parts being dismantled, viewed
and loaded to different work centres.

Regular follow-up through On-line system ensures timely completion of sub-assemblies.

The stripped components are subject to detail micrometric and Non Destructive Testing (NDT) checks.
Repair and refurbishing of worn-out parts and sub-assemblies are undertaken by skilled workmen.

Repairs and Refurbishing Processes include welding, hard alloy coatings, vibro-tumbling, micro-shot
peening, ultrasonic strain hardening, nickel alloy powder coating and a large number of protective
coatings. Assemblies and sub-assemblies undergo rigorous functional tests on various Hydraulic, Fuel
and Electrical Rigs.

Quality control checks are carried out using various NDT methods, like X-ray, Magna-flux, Dye-
penetrant check and ultrasonic inspection besides other conventional techniques. Overhaul of
accessories is carried out in environmentally controlled rooms. All the accessories after overhaul are
subjected to stringent tests on test rigs.

Every manufactured / overhauled Engine undergoes rigorous tests on Engine test beds that simulate all
flight conditions.

The preliminary and final acceptance test, hot test, endurance test and gas dynamic stability tests are
conducted through computerised controls.

Electronically assisted throttle, digital and analog read-outs help get real-time simultaneous data and
engine parameters during R-29B and RD-33 Engine testing.

FACILITIES PROVIDED

 Engine Division - Koraput has the following high tech facilities

 Large capacity lathes for tip tuning and tip grinding of rotor assemblies.
 Ultrasonic strain hardening and micro shot peening equipment for disc slots and blade roots.
 Submerged and argon arc welding of stator casings.
 Honeycomb forming through progressive die.
 Radiographic quality weldments on heat resistant steels, aluminum, magnesium, nickel and
titanium alloys.
  Manufacture of annual and can-annular flame tubes, combustion chambers, bearing housings,
diffuser and adjustable nozzle castings.
 Machining of a wide range of flanges and bushes.
 Facility for production of a wheel range of gears, splines, gear box casings, rings, ring holders,
bushes and brackets.
 Facility for normalising, carburising, Cyaniding, Nitriding, Alitising, Solutionising, Aging,
Diffusion Annealing, Sub-zero treatment and Vacuum & inner gas heat treatment to achieve
the desired mechanical and metallurgical properties of materials.
 Facility for high temperature resistant enameling of flame tubes, adjustable nozzles and other
hot zone components.
 Carrying out defect investigation and fractography study along with metallurgical analysis
using SCANNING ELECTRON MICROSCOPE.
 Hot Iso-static Pressing of Titanium, Nickle based and Aluminum based parts to reduce micro
defects in casting results in increase of acceptance level of casting.
 ROBOTIC PLASMA COATING of Engine parts to reduce cycle time by less than 50%.
 Sand Rapid Prototyping Technology (RPT) for manufacturing of Sand moulds & cores directly
from the CAD model using 3D Sand Printing Technology
 Isothermal forging
 Vacuum Investment casting

MAIN CUSTOMERS OF HAL (KORAPUT DIVISION):

The Indian Aircraft is HAL’s principal customers. Around 95% of the total of the total sale is to Indian
Air force. The other customers for Aircraft & Helicopters produced by the company are

 Indian Navy (Kiran- Jet trainer indigenous developed): chetak- Helicopters & advanced light
Helicopters etc.
 Indian Airlines (HS-7481-Transport Aircraft produced under licence.)
 Others (HS-7481 to BSF,DGCA etc., HT Puspak to Civil Clubs, Basant- Agriculture Aircraft
indigenously produced to directorate of agricultural aviation, chetak helicopters to state Govt.
coast guard, private firms ONGC etc.)
 Overseas customers – supplies sub-contracted work to world leaders like air bus industries,
Boeing and Rolls Royce. Besides these other export customers are like UK, France, Italy,
Nepal, Malaysia, Mauritius, Canada, Chile and Iraq etc. MITSUBISHI HEAVY
INDUSTRIES, Japan is a prestigious addition to this list.

VISION, MISSION AND OBJECTIVES

VISION: To make HAL a dynamic, vibrant, value-based learning organisation with human resources
exceptionally skilled, highly motivated and committed to meet the current and future challenges. This
will be driven by core values of the company fully embedded in the culture of the organisation.

MISSION:

 Achieving excellence in the manufacture of aero engines and spare parts.

 Offering matchless overhaul and repair services
 Providing total customer support through continuing pursuit of technical excellence,
outstanding product qualities, reliability and services.
 Striving constantly for self-reliance and self-sufficiency in all operation.
 Becoming the Asian leader in aero-engines production, ready to share technically knows how
for setting up project abroad.
 Maintaining and developing a team of highly motivated trained professional.
 Making frays into the export market as an ISO-9002 company.
OBJECTIVES:

In April 1971, the board of directors of HAL appointed committee known as review committee as
review committee of HAL to review the functioning of the company and make its recommendations.
Committee formulated a statement of basic objective adoption by HAL, as details below:

 To serve as an instrument of the national policy to achieve self-reliance in the design,

development and production of aircraft and aeronautics equipment to meet the counter changing
and growing needs with special emphasis on millet requirement.
 To ensure availability of total quality people to meet the organizational goals and objectives.
 To have a continuous improvement in knowledge, skill and competence (managerial,
behavioural and technical.)
 To promote a cultural achievement and excellence with emphasis on integrity, credibility and
quality.
 In fulfilment of these objectives, the company shall regard its fundamentally responsible for
design and development, rely however, upon such relevant facilities as are available into
national institutions, but always holding itself basic a responsible for the growth and furtherance
of the counter aeronautics capabilities.
 To conduct its business economically and efficiently it can contribute its due to the national
effort achieving a self-reliant and self-generating economy.
 Towards this end, to develop and maintain an organisation which will readily respond to and
adopt the changing matrix of socio techno-economic relation and where in a climate of grow
professional competence, self-discipline, mutual understand deep commitment and a sense of
belonging will be fostered and each employee will be encouraged to grow n accordance with
potential foe the furtherance of the organisation.
 The recommendations of the review were subsequently approved by the board of directors in
September 1972 and forwarded to the Government, who informed the company in May 1973
that they might adopt these objectives. These objectives remain essential unchanged to date
except that they have been amplified in 1983 through the medium of MD’s date 14th 1983
emphasizing the following:

 That our products are of the highest quality and reliability.

 That our products are fully supported after sale to customer,
 That the capacity utilization is optimised, restoring which is necessary to diversification and
export.
 Greater thrust towards indigenization of materials and product to improve self-reliance.

 To maintain a motivated workforce through empowerment of individual and team-building.

 To enhance organisational learning.

STRATEGY:

 To be in total alignment with corporate strategy.

 Maintain Human Resource at optimum level to meet the objectives and goals of the company.
 Be competent in mapping, analysis and upgradation of knowledge and skills including training,
re-training, multi-skilling etc.
 Cultivate leadership with shared vision at various levels in the organisation.
 Focus on development of core competence in High-Tech areas.
 Build cross-functional teams
 Create awareness of mission, values and organizational goals throughout the company.
 Introduce / implement personal policies based on performance that would ensure growth,
rewards, recognition, and motivation.
VALUES:

 Integrity- Every employee of HAL shall deal on behalf of the company with professionalism,
honesty, integrity as well as high moral and ethical standards.
 Excellence- HAL shall be committed to supply goods and services of the highest quality
standards. The company seeks to scale the height to excellence in all that it does.
 Responsibility- HAL shall be committed in all its actions to benefit the economic development
of the countries in which it operates and shall not engage in any activity that would adversely
affect such objective.
 Understanding- Employees of HAL shall be treated with dignity and respect. Employees’
policy and practices shall be administered in a manner that would create a harmonious
relationship between the employees and management.
 Agility- HAL shall be able to respond to customer’s needs with speed. This would involve
continuous reduction in cycle time of various processes.

“WE BELIEVE THAT OUR SUCCESS DEPENDS ON OUR ABILITY TO CONTINUALLY

REDUCE THE COST AND SHORTEN THE DELIVERY PERIOD OF OUR PRODUCTS AND
SERVICES.WE WILL ACHIEVE THIS BY ELIMINATING WASTE IN ALL PROCESSES IN
EVERY AREA OF WORK.”

-HAL
ORGANIZATIONAL STRUCTURE
CORPORATE ORGANIZATIONAL STRUCTURE
DEPARTMENT ORGANIZATIONAL STRUCTURE
AUTHORITY AND RESPONSIBILITY
Board of directors:
The board of the directors of the company has the following responsibility-

 To ensure that the company’s goals, values and objectives are clearly described and
communicated to the employees.
 Determine the goals and objectives of the company based on the needs of the stakeholders
(creditors, government, customers, employees, shareholders etc.).
 Appoints and regulates the general director to coordinate the workings of the organization.
 Board of directors, general managers are solely responsible for the formulation of rules,
regulations and policies of the company.
Managing Directors:

 Coordinate and communicate with the general and deputy general manager of each
department to formulate the strategies and plan of actions to achieve the organisational goals.
 During the decision making process, the valuable suggestions and viewpoints of the low level
employees are also taken into consideration by the higher authorities.
 Manager Directors on a continuous basis keeps a review on the working of different
departments.
 Managing directors address the joint consultant meeting, management training meeting, and
MD coordination meeting.
General Manager:

 Responsible for the arrangement and development of training programs at HAL.

 Responsible to report the managing directors about the progress rate of the respective
departments.
 Issues orders and instructions to the low level management.
Deputy General Managers:

 Acts as a communication channel between the top management and low management.
 Responsible for encouraging the employees by promotional and reward scheme.
Senior Manager and Chief Manager:

 Responsible to communicate the workings, policies and plan of actions to the supervisors and
workers.
Supervisors:

 Guide the workers in the workplace.

 Solve or communicates the issues of the workers.
FUNCTIONAL PROFILE
The strategic goal of HR department of HAL is to create an atmosphere of technological and managerial
excellence to become globally competitive aerospace industry. With the changing environment, rapid
technological changes characterized by a paradigm shift from licensed production to R&D based
production duly balanced with co-development technological, up-gradation etc, greater customer
demand focused diversification to civilian and expert market. The overall objective of the HRD plan is
to build a vibrant and learning organisation, so as to meet the challenges of quality & excellence;
recruitment and retention of competent human resources and develop high commitment and a sense of
belongings to the company.

FUNCTIONAL SECTION IN HAL

1. Establishment Section
2. ERP and Statistics Section
3. ERM and IR policy Section
4. ERM Legal and Disciplinary Section
5. HR-OL Section
6. HR-TM/PM Section

ESTABLISHMENT SECTION
The personnel officer of the establishment department has certain functions such as:

 Maintenance of the personnel records of all officers in Grade-\ I and above the records of the
workmen is Grade-F & below.
 Processing of application for the merit scholarship also for the outside employment.
 Keeping liaison with the District Policy Authorities regarding their stay & movement.
 Arranging release of employees for training course in India & Abroad.
ERP (ENTERPRISE RESOURCE PLANNING SYSTEM)
It comprises of a commercial software package that promises the seamless integration of all the
information following through the company financial, accounting, human resource, supply chain and
customer information.
STATISTICS SECTION
The personnel officer of the statistics section deals with the following functions:

 To maintain the record regarding manpower in MiG information system format for submission
to corporate office.
 To provide certificate/watches to the eligible employee on their completion of 10/15/25 years
of services.
 To send performance appraisal report to officers 0 probation.
 Arranging pre- retirement medical check-up of the section.
ERM-POLICY SECTION

 Deals with the policy matter regarding service conditions of employees

 Correspondence with the MD's office/corporate office seeking various clarification on rules &
regulation received from the corporate office
 Deals with personnel bulletin, personnel memorandum circular relating to various rules &
regulations affecting the service conditions of the employees.
ERM-IR
Implementation of provisions of labour laws.

 Interaction with labour Authorities.

 Interaction with recognized trade union and officers association.
Nomination of members to various voluntary organizations viz-
Educational Society Co-op societies sports club, benevolent fund, welfare fund, officers club etc. and
extension of necessary facilities to them.

 Submission of statutory reports and returns to concerned authorities.

 PF A/c holder contract labour establishment who are working in the division prior to 1982.
 Public Relations:

 Issuing of press releases arranging of press conferences putting of newspapers cuttings relating
to HAL to higher management including translation of vernacular ones.
 Publication of House magazines "Aeroflash".
 Conducting of cultural functions on the occasions of National festivals and VIP Visits in co-
ordination with welfare fund and educational Institutions.
 Conducting of National Festivals viz. Republic day, Independence Day etc. and other functions
as per corporate office instructions, via- Anti-terrorism days, Martyr's day, Auami-Ekta Divas.
 Formation of puja committee annually and enabling them to conduct "Sarvamin" pujas in the
township. Theyare" Sital Sashti", " Ratha Yatra", "Janmastami", "Dussehera" and "Shyama
Puja".
 Interaction with recognized linguistic cultural Associations including extension of facilities to
them for their programmes, functions.
 Administration of statutory and non-statutory facilities
ERM LEGAL AND DISCIPLINARY

 Looking in to legal cases

 Coordination of files
 Coordination of bank guarantees
 Defending cases for contract labours/suppliers/contractors etc.
 Preparing legal documents like core agreements, indemnity
 To frame charge sheet.
 Examination of various report from department on disciplinary matters.
 Receiving explanation & putting up notes to higher authorities for decision.
 Taking necessary action against an individual when the departs from the code of conduct
observed by the organization
HR-OL (OFFICIAL LANGUAGE)

 Translation from English to Hindi

 All types of printed materials namely name book, sign board etc.
 Constitutional provision contains Section- 343 to 351 relaed to the language policy of Govt. of
India
 Giving Hindi training to the employees
 Conducting examination like – Prabodh, Praveen, Pragayn
 Celebrating Hindi Pakhwada for 15 days
HR-TM/PM (TALENT MANAGEMENT AND PERFORMANCE MANAGEMENT)
RECRUITMENT SECTION
The sources of manpower supply are many & varied & the organization must know what & where they
are, in order to fill up their personnel needs. There are varieties of sources of recruitment, but in H.A.L,
KD, It fills up its various vacancies with the help of following the sources.

 Employment Exchange
 Local press.
 Campus Recruitment.
 Recruitment of dependent of the deceased employees.
 Recruitment of land affected persons.
 Recruitment of distinguished sportsman.
However, presently the recruitment has stopped due to the surplus manpower. Voluntary retirement
scheme was operation for the few years back which has also been stopped s a company has been able
to reduce the workmen to considerable extent especially the dead wood workers were given the first
preference to the option for the VRS.A 'resent, only the professional owing skills of managerial
engineers are given preference for recruitment.
HRD Cell

 Mentoring the newcomer

 Facilitate knowledge sharing
 Employee introduction
 counselling
 Monitoring the performance appraisal system (360* performance appraisal)
 Career planning & succession planning of officers
 Job rotation
 Succession planning
 Sponsorship of officers to premier engineering management institutes
 Grant of study leave
 Performance feedback to Officers
 Maintenance of computerized HRD database
 Conduct of periodic surveys
 Training of P.G. students in plant units
 Probation and confirmation
 Inter-divisional transfer
 Inter-departmental transfer
 Annual property returns
 Superannuation programme
 TRAINING AND DEVELOPMENT
Training is one of the most important tools for developing human resource. Hence, identification
of training competency profile in terms of vision mission of the company would be the strategic
point of the training and developing strategy of the company. The following objectives have been
set in this regard.

 To provide training to all employees at regular intervals in a plan period of 5 years.

 Training to become an integral component of individual professional
 Updating knowledge to avoid obsolescence.
 Enhancing professional creativity.
 Enables employees to shoulder higher responsibility
The goal of training will be to progressively achieve 7 days training per employee per year with a
budget of 2% of annual wage bill, keeping in view the organisation requirement and goals and
objectives of training, the following have been identifies as the key, focus area of the training-
technology, tooling, quality, information technology.
HAL has also introduced the scheme for learning and certification for executive as starting point
for building individual knowledge. The scheme provides an opportunity for the junior and middle
management cadre executive to broaden the perspective by not only learning about all functions
and procedure in their respective discipline but also in related areas and overall knowledge about
the organisation and its environment. So far approximately 45% of executive have been certified.
It is proposed to expand the coverage of this scheme further, if required, by linking, the scheme to
some kind of reward mechanism. Lastly the HRD plan will also include time to time OD inventions
to address specific requirements of the company.
HR-FM (FACILITIES MANAGEMENT)
TOWNSHIP ADMINISTRATION

 Quarter allotment
 Market allotment
 Russian Enclave, Transit Accommodation and crèche
 Guest house and Bachelor officers hostel
 Public utility buildings (Schools and college), Sports club building, Bhanja mandap, Utkal
cinema hall, Kalyan mandap building
CORPORATE SOCIAL RESPONSIBILITIES
This Division has adopted 14 surrounding villages for the socio-economic development in line with
company's corporate social responsibility programme.
The following facilities are being extended to these villages by the division-

 Complete Medical aid & treatment in HAL hospital. Besides this special· medical camps are
organization periodically in these villages for treatment, surgery, family planning & child
immunization.
 Free/confessional education to the children of these villages in the educational institutions runs
by HAL through Aeronautics Education Society.
 For the benefit of the school going children, there is free distribution of study materials in the
schools of the adopted villages.
 Provision of community centre.
 Provision of drinking water in the villages through tube wells or open wells.
 Provision of sports activities & cultural activities through the Division's Sports club, Employees
Welfare Fund & Cultural Association.
 Repair or Renovation of all schools building, provision of toilets in all schools of adopted
villages.
 Sponsoring of teams in District Level Tournaments & distribution of game items.
 One shop has been allotted to women self-help group for selling their products.
 Other initiatives such as blankets & sarees to needy & poor persons & it continuous every year.
 Facilities issue of BPL cards to eligible persons in coordination with State Government.
 Facility payment of old aged pension to eligible persons in coordination with State Government.
SURVEY REPORT
A survey was conducted to analyse and to evaluate the effectiveness of the Skill Development
Programme implemented at HAL, Koraput Division.
TARGETED POPULATION
In this survey the targeted people were basically workmen who come under non-executive category.
This population was the most appropriate choice for the survey because they had undergone several
Skill Development programmes as they are the people who deal with the technical and production part
of the organization and their skill level needs to be upgraded regularly.
SAMPLING
The sampling method used in this survey was ‘Convenient Sampling’ method. Here 200 people were
chosen who attended Skill Development Programme and forms were distributed to all these employees
and responses was recorded accordingly.
DATA COLLECTION
Relevant data was collected from the responses given by the employees during the survey and also by
interviewing the concerned faculties and trainers.
A questionnaire was prepared to gather the necessary data and was distributed among the employees.
There were 18 questions in that questionnaire which were formed basing upon the following seven
parameters
1. Identification of skill gap (6,9,13)
2. Need of skill development (16)
3. Training content (3,14)
4. Delivery of training (5,15)
5. Scope of implementation of learnings (2,10)
6. Impact of skill development programme (7,12,17)
7. Evaluation of skill development programme (4,11)
Two open ended questions were given to get the feedback and suggestions for improvement.
Likert scale (a scale of 1-5) was used in that questionnaire where 1= strongly disagree, 2= disagree, 3=
can’t say, 4= agree, 5= strongly agree. The respondent had to choose any one response as per his
perspective.
The questions asked in the interview conducted for the trainers and faculties highlighted different
aspects of Skill Development programme such as

 Planning
 Syllabus of Skill Development Programme
 Effectiveness
 Methodology
 Response of trainees
 Impact
 Issues
 Recommendations for improvement
SURVEY RESULT
For each of the 7 parameters mentioned earlier the cumulative score was calculated and a scale was set
to analyse that score. The parameters with their respective scales are as follows:
Identification of skill gap -: 3-6 (poor) 7-9 (average), 10-12 (good), 13-15 (excellent)
Need of skill development -: 1= strongly disagree, 2= disagree, 3= can’t say, 4= agree, 5=strongly agree
Training content -: 2-4 (poor), 5-6 (average), 7-8 (good), 9-10 (excellent)
Delivery of training -: 2-4 (poor), 5-6 (average), 7-8 (good), 9-10 (excellent)
Scope of implementation of learnings -: 2-4 (poor), 5-6 (average), 7-8 (good), 9-10 (excellent)
Impact of skill development programme -: 3-6 (poor), 7-9 (average), 10-12 (good), 13-15 (excellent)
Evaluation of skill development programme -: 2-4 (poor), 5-6 (average), 7-8 (good), 9-10 (excellent)
The following result was obtained from the survey.
GRAPHICAL REPRESENTATION OF THE DATA COLLECTED

poor average good Excellent

23 34 50 4

poor average good Excellent

20.72% 30.63% 45.04% 3.60%

 It can be observed from the above graph and pivot table that more number of respondents
perceived that the process of skill gap identification is good.
 But if the responses those fall under poor and average are consolidated than it shows that
more than 50% people are not satisfied with the process.
 Only 3% of people thinks that the process of skill gap identification is excellent.
strongly disagree disagree can't say agree strongly agree
2 6 12 40 51

Need of skill development

strongly disagree disagree can't say agree strongly agree

strongly disagree disagree can't say agree strongly agree

1.80% 5.40% 10.81% 36.03% 45.94%

 Here it can be easily concluded that most of the employee think, the skill level should be
upgraded regularly as 91 out of 111 i.e. around 82% of respondents are in favour of skill
development sessions.
 poor average good excellent
26 34 36 15

Training content

poor average good excellent

poor average good excellent

23.42% 30.63% 32.43% 13.51%

 Here there is a close battle between “average” and “good”.

 But if the numbers for “poor” is consolidated with “average”, then more than 53% employee
found training content of the skill development programmes to be unsatisfactory.
 poor average good excellent
29 36 37 9

Delivery of training

poor average good excellent

poor average good excellent

26.12% 32.43% 33.33% 8.10%

 It can be seen that 26.12% and 32.43% responses come under “poor” and “average” i.e. about
58% respondents are not satisfied with the delivery of training.
 The number is way more than 33.33% , that indicates the response “good”
 poor average good excellent
26 29 38 18

Scope of implementation

poor average good excellent

poor average good excellent

23.42% 26.12% 34.23% 16.21%
 poor average good excellent
18 46 39 8

Impact of skill development programme

poor average good excellent

poor average good excellent

16.21% 41.44% 35.13% 7.20%
 poor average good excellent
29 44 28 9

Evaluation of skil development programme

poor average good excellent

poor average good excellent

26.12% 39.63% 25.22% 8.10%