HAL restructuring on cards as delays mount in defense deliveries
**HAL Restructuring on Cards as Delays Mount in Defense Deliveries**
*By Akash Pandey | Sep 29, 2025, 11:04 AM*
The Indian government is considering a major restructuring of Hindustan Aeronautics Limited (HAL) to enhance its efficiency and accelerate military deliveries. This move comes amid mounting concerns over HAL’s massive ₹2.7 lakh crore order book, which has been constraining its capacity and causing delays in key projects such as the Light Combat Aircraft (LCA).
**Operational Overhaul: Dividing HAL into Independent Entities**
As part of the revamp plan, the government is exploring dividing HAL into independent entities, each focusing on different facets of aeronautical manufacturing. An external consulting group has been engaged to analyze HAL’s current structure and operations. They have begun discussions with senior management to formulate a roadmap aimed at improving efficiency and expediting delivery timelines for military contracts.
**Order Challenges Impacting Efficiency**
HAL’s current order book—which includes fighter jets, utility helicopters, attack choppers, and engines—is more than eight times its annual revenue. This significant backlog has raised red flags about the company’s ability to meet delivery schedules effectively. Notably, HAL is already facing delays in supplying Light Combat Aircrafts to the Indian Air Force (IAF), which is causing concern over the IAF’s shrinking combat strength.
**Looking Ahead: Boosting Operational Efficiency and Deliveries**
The overloaded order book is also impeding HAL’s participation in the Advanced Multirole Combat Aircraft (AMCA) program, a major initiative to develop next-generation fighters. The proposed restructuring aims to tackle these challenges by streamlining operations and boosting the company’s capacity to deliver critical defense equipment on time.
With these changes, HAL is expected to improve its overall operational efficiency, thereby strengthening India’s defense manufacturing capabilities and ensuring timely military deliveries in the future.
https://www.newsbytesapp.com/news/business/modi-government-eyes-hal-overhaul-to-speed-up-defense-deliveries/story
