HAL To Invest Up to US$615 Million For Indian Sukhoi Spares

India’s state-owned aircraft manufacturer, Hindustan Aeronautics Limited (HAL) will be investing up to Rs 4,000 crore (US$615m) initially to set up components store for maintaining the air force's Sukhoi fleet.

“Availability of Sukhoi fighter aircraft is more important. The existing system is that the customer (IAF in this case) places an order on HAL which we either buy or manufacture and then supply it. It is not an efficient way of doing things. Now, if we can order in bulk and store it, we get a bulk discount too. We are looking at an initial investment of Rs 2,000 crore to Rs 4,000 crore as an initial investment depending on what one stocks,” T. Suvarna Raju, chairman and managing director, HAL told reporters on the sidelines of an event to mark the 70th anniversary of establishment of diplomatic relations between India and Russia, The Asian Age reports monday.

A long-term agreement with Russia for the supply of spare parts and the rendering of technical assistance for five years for India's Sukhoi Su-30MKI aircraft was signed on March 17.

The agreement will enable HAL to procure required spares directly from the original equipment manufacturers authorized by Russia's Federal Service for Military-Technical Cooperation.

HAL has been manufacturing Su-30MKI under license from Russia since 2004.

HAL is also responsible for after-sales support, snag disposition, on-site repair and rectification, aircraft modification, and upgrade and obsolescence management of the Indian Su-30MKI fleet.