By VIVEK RAGHUVANSHI
NEW DELHI — The Indian government, acting on Air Force demands, has offered to spend $12 billion to encourage private firms to establish an aircraft manufacturing facility — a move that would break Hindustan Aeronautics Limited’s monopoly on aircraft manufacturing after years of delays on several projects.
Specifically, the Indian government has offered an advance order for the homemade light combat aircraft (LCA) Mark-2, a Defence Ministry source said.
The offer was conveyed to senior private sector executives during several meetings with MoD officials in the last month, the source said. India’s private defense majors, Tata Group, Mahindra & Mahindra and Larsen and Toubro, are the most capable of setting up an additional military aircraft plant, either independently or in partnership with overseas firms.
None of the executives who participated in the meeting would comment on whether they would consider building such a facility.
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