HAL

Sept 25 (Reuters) -

• INDIA DEFENCE MINISTRY: SIGNED DEAL WORTH 623.70 BILLION RUPEES WITH HINDUSTAN AERONAUTICS FOR TEJAS MK-1A FIGHTER AIRCRAFT -X

Source text: [ID:]

Further company coverage: HIAE.NS

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** Shares of Hindustan Aeronautics HIAE.NS rise 2% to 4,541 rupees after tech transfer pact

** Indian space agency ISRO, commercial arm NSIL and regulator IN-SPACe enable HAL to manufacture Small Satellite Launch Vehicle

** SSLV can carry 500kg payload to low-Earth orbit for communication, earth observation uses

** HAL gets autonomy to build, own, operate launch vehicle; 2-yr tech absorption, then 10-yr production phase

** 18 analysts have a "buy" rating on avg, median PT is 5,800 rupees - data compiled by LSEG

** Stock up nearly 9% YTD

(Reporting by Urvi Dugar)

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NEW DELHI, Sept 5 (Reuters) - India could build its third aircraft carrier, to be nuclear-powered, as part of a 15-year defence modernisation plan announced on Friday that also includes the use of Indian-made fighter jets by the navy for the first time.

Bordered by strategic rivals China and Pakistan, both of whom India has clashed with in deadly fights in recent years, New Delhi is increasingly leaning on domestic defence companies to bolster capabilities and cut dependence on foreign suppliers such as Russia, France and the United States.

"As the nation stands on the threshold of embracing greater challenges and responsibilities in the forthcoming decades, it is but imperative that the Services be equipped accordingly," said the defence ministry's 2025 roadmap.

"Greater private-public sector partnership is thus the road ahead."

India currently operates two aircraft carriers, one of Russian origin and the other home-built. The proposed carrier is expected to be nuclear-powered, a first for India, for longer reach and stealthier operations.

The document outlines the need for at least 10 nuclear propulsion systems to support the carrier and other future warships, underscoring India's ambition to expand its strategic reach across the Indian Ocean.

India also plans to induct an unspecified number of new-generation twin-engine, deck-based fighters and light combat aircraft, both being developed by state-owned Hindustan Aeronautics Ltd HIAE.NS for the navy.

In April, India signed a deal with France worth 630 billion rupees (about $8 billion) for 26 Rafale-Marine twin and single-seat jets, made by Dassault Aviation AM.PA, to be deployed on its two carriers: INS Vikrant and INS Vikramaditya.

India hopes to have 62 Rafale jets in service by 2030, including 36 for the air force that started arriving in 2020. Currently, the carriers deploy a fleet of Soviet-origin MiG-29K.

The roadmap also anticipates procuring two electromagnetic aircraft launch systems, developed for the U.S. Navy to launch aircraft from carriers using electromagnetic forces instead of traditional steam catapults.

It also places a big emphasis on drones that played a key role in a May military conflict with arch-enemy Pakistan.

India has budgeted spending of about 6.81 trillion rupees ($77 billion) on defence this fiscal year. It is the world's fourth biggest defence spender after the United States, China and Russia, according to World Bank data.

(Reporting by Shivam Patel and Krishna N. Das in New Delhi; Editing by Ros Russell)

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-- Source link: https://tinyurl.com/5942e8z3

-- Note: Reuters has not verified this story and does not vouch for its accuracy

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** Shares of Hindustan Aeronautics HIAE.NS rise nearly 1% to 4,506 rupees

** Wins order for 97 fighter jets from govt; biggest on record worth 670 bln rupees ($7.66 bln) - CLSA

** CLSA ("outperform", 5,436 rupees PT) says HAL biggest beneficiary of government's 'Make in India' push with large growth pipeline

** Notes HAL deserves premium over global aerospace peers due to pipeline, market access; has virtual monopoly in high entry barrier industry

** On avg, stock rated "buy" by 18 analysts; median PT at 5,800 rupees - data compiled by LSEG

** Stock up nearly 8% YTD

($1 = 87.4200 Indian rupees)

(Reporting by Komal Salecha)

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Aug 21 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• MINISTRY OF DEFENCE APPROVED PROPOSAL FOR PROCUREMENT OF 97 AIRCRAFT FROM CO

Source text: ID:nBSE2Dj4G8

Further company coverage: HIAE.NS

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** Hindustan Aeronautics (HAL) HIAE.NS rises 2.1% to 4,545 rupees

** Government approves order for 97 fighter jets worth 620 bln rupees ($7.12 bln) from HAL, local media reports, citing sources

** HAL did not immediately respond to Reuters' request for comment

** HIAE gains ~9% YTD

($1 = 87.1260 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

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** Shares of Hindustan Aeronautics HIAE.NS rise about 3% to 4538 rupees apiece

** State-run aerospace manufacturer reports 11% rise in consolidated June-quarter revenue

** Nomura keeps "buy" rating, citing strong order book, defence indigenization, and R&D focus

** CLSA reiterates "outperform," highlighting gains due to $12 billion order execution under Prime Minister Narendra Modi's third term

** Sees large fighter aircraft order in 2025 and GE engine deal visibility as near-term catalysts

** CLSA says HIAE justifiably trades at a premium to global peers given Make-in-India pipeline and market access

** The average rating of 17 analysts tracking HIAE is "buy", the median price target is 5650 rupees, 28% above the last close, data compiled by LSEG shows

** HIAE shares are up 11.7% in 2025 so far, outperforming the 0.9% uptick in the Nifty PSE index .NIFTYPSE, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

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Aug 12 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HINDUSTAN AERONAUTICS Q1 CONSOL NET PROFIT 13.84 BILLION RUPEES

• HINDUSTAN AERONAUTICS Q1 CONSOL REVENUE FROM OPERATIONS 48.19 BILLION RUPEES

Source text: [ID:]

Further company coverage: HIAE.NS

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July 17 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• INDIA GOVERNMENT - HINDUSTAN AERONAUTICS GETS FIRST SET OF WING ASSEMBLIES FOR LIGHT COMBAT AIRCRAFT MK1A FROM L&T

Source text: [ID:]

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June 20 (Reuters) -

• INDIA'S HINDUSTAN AERONAUTICS HIAE.NS WINS BID TO PRIVATELY MAKE SMALL SATELLITE LAUNCH ROCKETS - INDIA SPACE REGULATOR

• TWO CONSORTIUMS, LED BY ADANI UNIT ALPHA DESIGN AND BHARAT DYNAMICS HIAE.NS, WERE ALSO QUALIFIED BIDDERS - INDIA SPACE REGULATOR

• HINDUSTAN AERONAUTICS APPLIED INDEPENDENTLY AND NOT AS PART OF A CONSORTIUM - INDIA SPACE REGULATOR

Further company coverage: HIAE.NS

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June 4 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HINDUSTAN AERONAUTICS LTD - DENIES REPORTS OF STALLED NEGOTIATIONS WITH GENERAL ELECTRIC

• HAL: NEGOTIATIONS WITH GE ARE ON TRACK AND PROGRESSING WELL

• HAL: HAL IS NOT IN TALKS WITH ANY OTHER COMPANY REGARDING ENGINES FOR LCA MK2

Source text: ID:nBSEbhBch9

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By Greg Torode and Jun Yuan Yong

HONG KONG, May 28 (Reuters) - Spending on weapons and research is spiking among some Asian countries as they respond to a darkening security outlook by broadening their outside industrial partnerships while trying to boost their own defence industries, a new study has found.

The annual Asia-Pacific Regional Security Assessment released on Wednesday by the London-based International Institute for Strategic Studies (IISS) said outside industrial help remains vital even as regional nations ultimately aim for self-reliance.

"Recent conflicts in Ukraine and the Middle East, coupled with worsening U.S.-China strategic competition and deterioration of the Asia-Pacific security landscape, may lead to a rising tide of defence-industrial partnerships," it read.

"Competitive security dynamics over simmering flashpoints ... feed into the need to develop military capabilities to address them."

Spending on defence procurement and research and development rose $2.7 billion between 2022 and 2024, it showed, to reach $10.5 billion among Southeast Asia's key nations of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The spike comes even as the nations spent an average of 1.5% of GDP on defence in 2024, a figure that has kept relatively constant over the last decade.

The study, released ahead of this weekend's annual Shangri-La Dialogue defence meeting in Singapore, said Asia-Pacific nations still rely on imports for most key weapons and equipment.

Such items range from submarines and combat aircraft to drones, missiles and advanced electronics for surveillance and intelligence gathering.

The informal Singapore gathering of global defence and military officials is expected to be dominated by uncertainties stemming from the protracted Ukraine conflict, Trump administration security policies and regional tension over Taiwan and the disputed busy waterway of the South China Sea .

Saudi Arabia and the United Arab Emirates are increasingly active and making inroads, the study said, though European companies have a prominent and expanding regional presence, via technology transfer, joint ventures and licenced assembly deals.

The UAE now operates a diversified network of collaborators, such as China's NORINCO weapons giant and rival India's Hindustan Aeronautics.

Joint development operations are not always easy, the study said, offering lessons from India's two-decade collaboration with Russia to produce the BrahMos supersonic anti-ship missile.

While the feared weapon is fielded by India, exports have been hampered by lack of a clear strategy, with deliveries to its first third-party customer, the Philippines, starting only in 2024, the study added.

Closer Russia-China ties could further complicate the weapon's development, particularly if Moscow chooses to prioritise ties with Beijing to develop a hypersonic version of the missile.

(Reporting by Greg Torode in Hong Kong and Yong Jun Yuan in Singapore; Editing by Clarence Fernandez)

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** Motilal Oswal starts Hindustan Aeronautics HIAE.NS with "buy", PT of 5,100 rupees

** Warplane maker's stock rises ~2.3% to 4,122 rupees

** Brokerage expects HAL to benefit from strong pipeline of projects and overall revenue to record 29% CAGR over FY25-27, driven by a sharp scale up in manufacturing revenue

** Says co's projects, including Tejas Mk1, Tejas Mk1a and Su-30 upgrade, will fuel manufacturing revenue growth

** Stock rated "buy" on avg; median PT is 4,887 rupees, per data compiled by LSEG

** HIAE down 1.66% this year, as of last close

(Reporting by Shivani Tanna in Bengaluru)

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** India's Hindustan Aeronautics Ltd (HAL) HIAE.NS soars as much as 6.4% to three-month high of 4,444.95 rupees

** HAL to supply 156 light combat helicopters to Indian defence ministry in two contracts worth 627 bln rupees ($11.7 mln)

** Sees provisional FY25 revenue of 304 bln rupees vs 303.8 bln rupees in FY24; order book of 1.84 trln rupees at FY end from 94.1 bln rupees at start

** UBS raises PT to 5,440 rupees on improved visibility in orderbook execution

** Antique Stock Broking expects ramp in rev from FY26 on alleviating supply challenges

** Trading volume of ~3.5 mln shares is double the six-month daily avg

** HIAE up 6% YTD

($1 = 85.4700 Indian rupees)

(Reporting by Vivek Kumar M)

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March 28 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• INDIA SIGNS CONTRACT TO BUY 156 LIGHT COMBAT HELICOPTERS FOR AIR FORCE, ARMY AT COST OF OVER 627 BILLION RUPEES, EXCLUDING TAXES - INDIAN OFFICIAL

Source text: [ID:]

Further company coverage: HIAE.NS

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March 27 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• SIGNED TODAY AN AMENDMENT TO LCA MK1 FOC CONTRACT

• CONTRACT HAS BEEN REVISED TO 65.42 BILLION RUPEES

Source text: ID:nBSE1yqzNc

Further company coverage: HIAE.NS

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** Defence and aerospace firm Hindustan Aeronautics Ltd (HAL) HIAE.NS up 2.87% at 4127.25 rupees

** GE Aerospace GE.N delivers first of 99 engines to HAL for Tejas Light Combat aircraft, local media reports

** Delivery comes after months of delay due to GE supply chain issues

** 12 engines to be delivered this year, The Hindu reports

** HAL shares have gained 25% in the last 12 months

(Reporting by Ananta Agarwal in Bengaluru)

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Corrects paragraph 9 in March 5 story to say each rocket, not each booster, costs about $30 million.

By Nivedita Bhattacharjee

BENGALURU, March 5 (Reuters) - The Indian industrial conglomerate Larsen & Toubro LART.NS said it is betting on aerospace as a potential growth engine, including launch vehicle and satellite manufacturing, as the country cuts reliance on imports and boosts private participation.

L&T, considered a bellwether for India's infrastructure spending because of how many industries its work touches, is the country's largest private-sector defense manufacturer by revenue; its Precision Engineering and Systems unit posted revenue of 46.10 billion rupees ($548.3 million) in the 2024 fiscal year, up 41% from the previous year.

At its factory in Coimbatore, in the southern Indian state of Tamil Nadu, L&T is assembling the country's first privately built Polar Satellite Launch Vehicle (PSLV), a mainstay of ISRO's launch programme, through a consortium with Hindustan Aeronautics Limited HIAE.NS. It is also building equipment for ISRO's other deep space exploration programs.

The company hopes to scale up its space business amid India's privatization push, which has eased foreign investment limits and allocated a larger share of procurement budgets away from state-run enterprises.

"We have decades of experience in high-tech manufacturing, critical systems, and scaling up production. The same expertise applies to aerospace," AT Ramchandani, senior vice president and head of L&T's Precision Engineering and Systems, told Reuters in an interview at the factory.

Walking through the facility, amid workers building heat shields and other rocket components, he said the global launch vehicle market was expected to hit about $160 billion over the next decade. The Indian government has set a target of reaching $44 billion for the country's commercial space sector in that time. India's space sector is valued at $13 billion, according to a February report by research firm DAM Capital.

L&T's plans intersect with India's strategy to position the country as a leading space power, with Prime Minister Modi's government pushing for the industry to become a force for further economic growth.

The country hopes liberalized regulations allowing private firms to design, build and operate launch services will attract global players, mirroring the commercial space boom seen in the United States and Europe.

The first launch of a privately built PSLV booster, delayed from early 2025, is expected to occur by mid-year, though an exact date had not yet been decided, Ramchandani said. Each rocket costs about $30 million.

"Clearly when we are getting into a business like this, it is with an eye to the global market," Ramchandani said. "There’s demand for timely and cost-effective launches, especially as satellite constellations grow. If we can provide availability, reliability, and cost advantages, India can be competitive."

(Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by Gerry Doyle)

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By Shivam Patel

NEW DELHI, March 4 (Reuters) - An Indian defence committee has recommended including the private sector in military aircraft manufacturing to shore up the capabilities of the Indian Air Force, whose falling squadron strength and delayed fighter deliveries have irked its chief.

The move, if accepted, would boost India's private defence firms and reduce the burden on state-owned Hindustan Aeronautics Ltd HIAE.NS, which makes most of India's military aircraft.

The committee, headed by defence ministry's top bureaucrat, submitted its report to Defence Minister Rajnath Singh on Monday, the government said in a statement late on Monday, adding that Singh had directed that recommendations "be followed up in a time bound manner".

The Indian Air Force's fleet of mainly Soviet-origin aircraft has been operating with only 31 fighter squadrons compared with a target of 42 amid tense relations with neighbours China and Pakistan.

India's Air Chief Marshal AP Singh has said that the country should involve the private sector to speed up defence aerospace manufacturing. Speaking at an event in New Delhi last week, he said India must add 35-40 fighters per year to fill existing gaps and phase out older aircraft.

Indian officials have said that Hindustan Aeronautics could deliver up to 24 aircraft powered by a General Electric GE.N engine in the coming fiscal year, which begins in April.

The company was unable to deliver any of the 83 fighters on order in the current fiscal year, in part due to the slow arrival of engines from GE, which has been facing supply chain issues.

(Reporting by Shivam Patel in New Delhi. Editing by Gerry Doyle)

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By Aditya Kalra, Shivam Patel and Tim Hepher

NEW DELHI/PARIS, Feb 28 (Reuters) - India is in talks to purchase 10 more Airbus C-295 military transport aircraft than the 71 it had planned, as the country ramps up efforts to replace its ageing fleet with locally built planes, three people familiar with the matter told Reuters.

The discussions come as a boost for Airbus' AIR.PA partnership with Indian conglomerate Tata Group after they jointly opened an assembly line for the C-295 in the western state of Gujarat last year.

India's government in 2021 struck a $2.52 billion deal for 56 C-295 aircraft for the Air Force, and last year gave an initial nod for 15 more for its navy and coast guard. Now, talks are on to add up to 10 aircraft to the 2024 order, said the three sources, who declined to be named as the talks are private.

One source said the additional planes are for the Indian Air Force.

"The Indian Air Force has significant transport capability requirements; they need a lot of aircraft," said Laxman Behera, a defence expert at the Jawaharlal Nehru University in New Delhi.

Airbus and Tata Advanced Systems, which is running the project, declined to comment. India's defence ministry did not respond to a Reuters request for comment.

Going by the deal value of the 2021 purchase of 56 aircraft, an expanded order for 25 C-295s could be worth $1.1 billion.

India is the world's biggest arms importer but has been trying to boost domestic production and self reliance as it looks to counter neighbouring China's rapidly growing military.

The C-295 is a multi-role transport aircraft that can carry up to 70 troops or eight tonnes of cargo and can carry out missions such as airborne warning, surveillance and reconnaissance.

Airbus has said the Indian Air Force will soon become the largest C-295 operator, and that in India, all of the aircraft's structural components are being made locally.

AIR FORCE'S GROWING NEEDS

The source who said the expanded order was for the Air Force also said the Indian government is likely to place more orders for C-295s, while a separate industry source, familiar with the Ministry of Defence's thinking, said New Delhi wants up to 75 more C-295s, above the 56 ordered in 2021.

Sixteen C-295s from the 2021 order are due to come from Airbus' site in Spain while the remaining are expected to be assembled at the Airbus-Tata facility in India by 2031.

The new purchased C-295s could come solely from the Gujarat assembly line, but if New Delhi wants delivery faster, some may still need to come from Spain, the first source added.

The C-295 replaces India's legacy fleet of 56 Avro HS-748, which were first introduced in 1961 and formed the backbone of the Air Force's transport fleet.

The Indian Air Force chief this year criticised slow deliveries of fighter jets from state-run warplane maker Hindustan Aeronautics HIAE.NS and has emphasised increasing production speed and called for opening up warplane manufacturing to private firms to boost competition.

(Reporting by Aditya Kalra, Shivam Patel and Tim Hepher; Additional reporting by Aditi Shah; Editing by Gerry Doyle)

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Repeats story from February 14, no changes to text

By Nivedita Bhattacharjee

BENGALURU, Feb 14 (Reuters) - Indian conglomerate Adani Group is a finalist, alongside two government-linked groups, to take over private production of India’s Small Satellite Launch Vehicle, three sources familiar with the matter told Reuters.

The SSLV, developed by the Indian Space Research Organisation, is a low-cost vehicle capable of deploying satellites of up to 500 kg (1,100 pounds) into low-Earth orbit, or LEO - the most sought after segment of the satellite launch market.

After its first successful launch in 2023, the government moved to transfer the vehicle’s production and technology to private industry as part of a broader push to expand India’s commercial space sector.

That move has been the highest-profile piece of India's privatisation efforts, which the government hopes will help the country claim a greater share of the booming global satellite launch market, dominated by private players such as SpaceX.

“LEO is the name of the game right now, so the potential winner has the opportunity to really tap into a rapidly growing market,” said Damodaran Raman, a director at Deloitte who soecialises in space tech.

About 20 companies initially expressed interest in bidding for the SSLV, the first privatisation of its kind under Prime Minister Narendra Modi’s policy drive to open up India’s space industry.

The three finalist consortiums include Alpha Design Technologies, in which Adani Defence Systems and Technologies owns a stake; state-backed Bharat Dynamics Limited BARA.NS; and Hindustan Aeronautics Limited HIAE.NS. Reuters could not verify the exact structure of each bidding group.

The companies did not respond to Reuters requests for comment. The sources did not want to be named because details of the bids are not public.

The winning company is expected to pay India's space agency about 3 billion rupees ($30 million) for the SSLV, covering design know-how, manufacturing processes, quality-assurance training, and up to 24 months of technical support or two successful launches, according to one of the sources.

Beyond financial capability, bidders must demonstrate the ability to manufacture, sustain, and sell the SSLV.

A second source familiar with the matter said the limited availability of launch slots with major industry players such as SpaceX presents a significant opportunity for new entrants, with the possibility of positioning themselves as a go-to launch partner for South Asia.

The global satellite launch vehicle market is projected to grow from $5.6 billion in 2025 to $113 billion by 2030, with low-Earth orbit launches dominating, according to research firm Mordor Intelligence.

India accounts for only 2% of the global space economy. The Modi government aims to expand that share fivefold to $44 billion by the end of the decade.

Companies vying for the SSLV contract were required to be profitable, with the lead bidder having at least five years of manufacturing experience and an annual revenue of at least 4 billion rupees ($50 million), according to India’s space regulator.

($1 = 86.9500 Indian rupees)

($1 = 86.7540 Indian rupees)

(Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by Gerry Doyle)

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By Shivam Patel and Abhijith Ganapavaram

BENGALURU, India, Feb 14 (Reuters) - India is likely to seek bids this year for 114 multi-role fighters, two sources said, marking a major step in a process to bolster the country's stock of combat aircraft that has gone on for nearly two decades.

The project is critical for the Indian Air Force, whose squadrons of mainly Russian and ex-Soviet aircraft have fallen to 31 from an approved strength of 42 at a time when rival China is expanding its air force rapidly.

On the sidelines of the Aero India aerospace exhibition in Bengaluru, many of the companies who expressed interest in 2018 - when the government last sought planemakers for the project - said they were still in the hunt.

"The Chinese are inducting modern fighters and Pakistanis are also getting some Chinese support whereas the Indian Air Force, in terms of combat squadrons, is deficient. There is no doubt about it," said Laxman Behera, a defence expert at government-funded Jawaharlal Nehru University in New Delhi.

"We'll have to wait and watch."

Potential competitors for the Multi-Role Fighter Aircraft (MRFA) contract include U.S. defence firms Lockheed Martin LMT.N and Boeing BA.N, Russia's United Aircraft Corporation (UAC), France's Dassault Aviation AM.PA, Sweden's Saab AB SAABb.ST, and Germany's Eurofighter.

Companies are preparing supply chain blueprints, scouting for local partners, and ensuring cost effectiveness of their offerings, two executives and three sources told Reuters this week at the exhibition.

Lockheed Martin is trying to sell its F-21, an India-specific variant of its widely used F-16 fighter, to New Delhi for the MRFA, which will be a 4.5 generation aircraft made in India with a local partner.

Separately on Thursday, President Donald Trump said the U.S. would eventually sell the country fifth generation F-35 stealth fighters, although India's foreign secretary said afterward that no formal process had started yet.

"We are encouraged by the recent announcement by President Trump to provide the F-35 to India. However, these are government-to-government decisions. We look forward to working closely with both governments on upcoming strategic procurements," a Lockheed Martin spokesperson said.

RUSSIAN SUPPLIES

Lockheed builds F-16 wings at the company's joint production facility with India's Tata Group in the southern city of Hyderabad and has plans to use the facility for F-21 jets.

The IAF does not have U.S. fighter jets in its active fleet, but about 50 aircraft are powered by General Electric engines, with 170 more on order.

UAC may have advanced jets on offer, including the stealthy Sukhoi Su-57, a Russian industry source said.

The Su-57 is a generation ahead of the Su-35 and the MiG-35 that were previously on offer for the MRFA and has a more powerful engine, avionics, and radar systems.

Russia has for decades been the main weapons supplier to India, the world's biggest arms importer. But New Delhi has been diversifying its imports since the war in Ukraine hobbled Moscow's ability to supply spares to India.

Russia brought the Su-57 to Aero India and offered to make the aircraft in India in "informal" conversations with Indian defence officials, saying it could by built using local production lines for Su-30s.

More than 10 years ago, Russia and India had planned to build the Su-57, then called the T-50, in India, but the effort was abandoned.

Sweden's Saab, which also intends to compete for the MRFA project with its JAS-39 Gripen E jet, has a blueprint for an Indian supply chain, said Kent-Åke Molin, head of the Gripen India campaign.

Molin said he was speaking to potential partners for the project and that Indian officials had given a "very positive" reception to the aircraft, adding that the jet was more cost-efficient than its peers.

The MRFA project is a continuation of an uncompleted acquisition of 126 jets that started in 2007 but was withdrawn in 2015 after Modi's government decided to buy 36 Rafale fighter jets from Dassault Aviation AM.PA. The Rafale is also a potential competitor in the MRFA project.

Dassault did not immediately respond to a request for comment.

(Reporting by Shivam Patel and Abhijith Ganapavaram in Bengaluru. Editing by Gerry Doyle and David Evans)

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This Feb 12 story was updated on Feb 13 to add GE Aerospace comments in paragraph 11

By Shivam Patel

BENGALURU, Feb 12 (Reuters) - India's state fighter jet maker Hindustan Aeronautics (HAL) HIAE.NS said it understood why India's air force was impatient over delays in delivering warplanes and would start rolling them out once General Electric GE.N supplied engines for them.

In a pre-scheduled press conference on Tuesday that was held a day after the head of the air force rebuked company officials, HAL Chairman D.K. Sunil said when asked about the delays: "The concern of the air chief is understandable. Of course, his squadron strengths are going down."

"We have now promised that we will have all the structures ready," Sunil said. "We are building this. Once the engines are available, this will start rolling out."

The Indian Air Force's fleet of mainly ex-Soviet aircraft has been operating with only 31 fighter squadrons compared with a target of 42, frustrating its officials given the country's tense relations with neighbours China and Pakistan.

The Air Force has ordered 83 Mk-1A light combat aircraft from HAL, an advanced variant of the operational Mk-1 "Tejas", with deliveries initially planned to start in February 2024 as part of a 364.68 billion rupees ($4.20 billion) contract. It plans to procure 97 more Mk-1As, which would take the total of the Tejas group of aircraft to 220.

But deliveries have been repeatedly delayed, due in part to the slow arrival of engines from GE, which has been facing supply chain issues.

Air Chief Marshal Amar Preet Singh was seen rebuking HAL officials at the Aero India air show in Bengaluru in a video filmed by defence news outlet National Defence that went viral on Tuesday.

"At the moment I am just not confident of HAL," Singh said, seating inside the cockpit of a trainer aircraft as HAL officials crouched by his side on a platform.

"I was promised that when I come here in February I will see 11 Mk1As ready, minus the engines," Singh said. "Not a single one is ready. Not impressed."

India's defence production secretary, Sanjeev Kumar, said at the same air show that production lines had stabilised both at HAL and GE, and that the Indian company would have the capacity to hand over 16 to 24 aircraft in the fiscal year that starts in April.

GE Aerospace referred to a company statement from earlier this month that said the company has so far delivered 65 engines for the LCA Mk-1 programme, and another 99 are on order for the LCA Mk-1A variant.

India's close defence partner Russia this week also offered to make its fifth-generation stealth fighter jet Sukhoi Su-57 in India for the Indian Air Force, by enhancing the Indian production line of the Sukhoi Su-30 aircraft, 260 of which are in India's fleet.

($1 = 86.8700 Indian rupees)

(Reporting by Shivam Patel; Writing by Krishna N. Das; Editing by Jamie Freed)

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Feb 12 (Reuters) - India's Hindustan Aeronautics Ltd (HAL) HIAE.NS posted a jump in third-quarter profit on Wednesday, driven by sustained demand for its aircraft from the country's defence ministry.

The state-owned fighter jet manufacturer's consolidated net profit rose 14% to 14.40 billion rupees ($165.74 million) for the three-month period ended December 31.

The ordering activity in the defense sector remained robust throughout the quarter, analysts said, and also mentioned that revenue growth was driven by the ongoing execution of the manufacturing order book, along with consistent increases in replacements and spares.

The spares and repair business makes up a substantial portion of HAL's total sales, according to the company's latest annual report.

Additionally, HAL secured an order worth 135 billion rupees from the Indian government for 12 Sukhoi fighter jets in December.

The Bengaluru-based company declared a dividend of 25 rupees apiece for fiscal 2025, and said its revenue from operations jumped 15% to 69.57 billion rupees year-on-year.

Last month, defence sector peer Bharat Electronics BAJE.NS reported third-quarter numbers that came in better than market expectations.

($1 = 86.8825 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)

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By Shivam Patel and Abhijith Ganapavaram

BENGALURU, India, Feb 11 (Reuters) - Russia has offered to make its fifth-generation stealth fighter jet Sukhoi Su-57 in India for the Indian Air Force, a Russian and an Indian official said on Tuesday, as Moscow looks to boost defence ties with New Delhi.

Russia has for decades been the main weapons supplier to India, the world's biggest arms importer, and its fighter jets are part of India's military fleet. But Moscow's ability in recent years to export has been hobbled by the war in Ukraine, making New Delhi look westward.

A spokesperson for Russian state arms exporter Rosoboronexport told reporters the fighter jet could go into production as early as this year if the Indian government accepts its offer.

India's defence ministry did not immediately respond to a request for comment.

A Russian industry source and an Indian official said an informal offer had been made by Russia in talks with officials of the Indian government and state-owned planemaker Hindustan Aeronautics Ltd HIAE.NS.

The move comes as the Indian Air Force is keen to shore up its fighter squadrons, which have fallen to 31 from a target of 42, at a time when rival China is expanding its own air force.

Making the aircraft in India, with a full transfer of technology, will ensure that production and maintenance will not be affected by Western sanctions on Russia, the Rosoboronexport spokesperson told reporters on the sidelines of the Aero India aerospace exhibition in the southern city of Bengaluru. He declined to share his name.

He said the jet could be produced with enhancements to the Indian production line of the Sukhoi Su-30 aircraft, 260 of which are in the Indian Air Force's fleet.

Both the Su-57 and rival Lockheed Martin's LMT.N F-35 Lightning II, a fifth generation stealth fighter jet of the U.S., were on display at the Aero India exhibition.

Prime Minister Narendra Modi's government has been stressing the need to make India a global manufacturing hub and boost domestic defence production in order to achieve self reliance.

Despite being touted as a Russian fifth-generation fighter aircraft to rival its U.S. equivalent, the Su-57 was plagued by development delays and a crash in 2019. According to its manufacturer, serial production of the aircraft began in 2022.

Last year, Russia flew the SU-57, to Zhuhai in China for its first air show abroad, in an apparent message to the West about China-Russia cooperation.

(Reporting by Shivam Patel and Abhijith Ganapavaram in Bengaluru; Editing by Bernadette Baum)

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By Shivam Patel

NEW DELHI, Feb 10 (Reuters) - India is in talks with the United States for the purchase and co-production of combat vehicles as well as finalising a fighter jet engine deal, people familiar with the matter said, as Prime Minister Narendra Modi meets President Donald Trump this week.

The world's biggest arms importer, India traditionally relies mainly on Russia. Last month, Trump asked Modi, who heads to Washington on Wednesday for a two-day visit, to buy more U.S.-made security equipment and move "toward a fair trading relationship".

India and the United States have been in protracted talks over the co-production of Stryker combat vehicles made by General Dynamics GD.N and also used by the U.S. Army.

They are also working to wrap up contract talks on co-production of fighter jet engines in India for the Indian Air Force, a deal agreed in 2023, said two sources who sought anonymity as they were not authorised to tall to the media.

"We certainly wish to expedite the transaction which we would like to have with the United States," Defence Production Secretary Sanjeev Kumar told reporters on Sunday, adding that such efforts were underway. But he did not elaborate.

Officials of India's state-owned Hindustan Aeronautics Ltd (HAL) HIAE.NS are set to meet in coming weeks with U.S. officials and the aerospace unit of General Electric GE.N, maker of GE-414 engines, for talks to finalise the deal by March, the sources said.

GE, HAL, General Dynamics, the U.S. embassy in New Delhi and Indian defence and foreign ministries did not immediately respond to requests for comment.

New Delhi has started talks with the Trump administration on a plan to buy Stryker vehicles after they were demonstrated late last year for the Indian Army, two other sources said, also speaking on condition of anonymity.

The plan envisages that India will acquire a few hundred Strykers with a mounted anti-tank guided missile system, they added, and later co-produce them through a state-run firm, the sources said.

It was not immediately clear if the two potential deals would feature in talks between Modi and Trump. India's foreign ministry has said trade, defence cooperation and technology are among the issues to be discussed.

(Reporting by Shivam Patel in New Delhi; Editing by Clarence Fernandez)

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By Manoj Kumar

NEW DELHI, Dec 19 (Reuters) - India is preparing for possible trade talks with the United States, aiming for increased investments from U.S. companies and higher exports once President-elect Donald Trump takes office.

While aiming to protect its manufacturers from potential U.S. tariff hikes on its exports, India is exploring ways to strengthen ties with Washington as Trump has threatened tariffs of 60% and other curbs on imports from China.

Here are key commercial issues between the two countries:

TRUMP POLICY ON CHINA

India seeks to leverage Trump's policy by capitalising on U.S. trade tension with China, aiming to draw away from it investments and businesses diversifying supply chains.

To align with Trump’s "America First" policy, India is ready to offer more incentives such as tax cuts and land access in states like Andhra Pradesh, Gujarat and Tamil Nadu in industries such as semiconductors, electronics, aircraft parts, and renewables.

India also seeks to integrate into U.S. global supply chains by supplying low-end and intermediate products, from chips and solar panels to machinery and pharmaceuticals.

ENERGY AND SECURITY

To tackle U.S. concerns on trade imbalances, India is open to increasing imports of energy products, such as LNG, and defence equipment while retaining its independent foreign and trade policies.

Discussions on co-producing General Electric's GE.N, fighter jet engines by state-run Hindustan Aeronautics HIAE.NS in India, have made little progress.

But India hopes the two countries' 2023 defence industrial co-operation roadmap will fast-track technology sharing and co-production initiatives.

BROADER TRADE-CUM-INVESTMENT PACT

The government and industry groups favour a broader trade and investment pact with the United States to help Indian manufacturers integrate into global supply chains while retaining policy flexibility to safeguard national interests.

BOOST TO EXPORTS

In return, India seeks to increase exports in pharmaceuticals, garments, footwear, engineering goods, chemicals, areas where it has a growing comparative advantage over China.

AIMING FOR U.S. INVESTMENTS

India is targeting greater U.S. investments, inspired by Apple Inc AAPL.O starting production of iPhones in the country. India hopes to lure more companies into manufacturing by offering incentives, streamlined regulatory approvals, and affordable land.

The United States is already India’s third-largest investor, with $65 billion in direct investments from 2000 to 2023.

SELECTIVE TARIFF CONCESSIONS

Advisers have suggested considering selective tariff cuts on items such as pork and Harley-Davidson motorcycles, which have limited domestic demand. Broader concessions could be negotiated in exchange for gains such as more visas for Indian professionals and export-boosting investments.

TWO-WAY TRADE

Two-way trade between India and the United States, India’s largest trading partner, surpassed $118 billion in 2023/24, with India posting a trade surplus of $32 billion.

Industry estimates suggest trade could grow by $50 billion within two to three years, highlighting the growth potential for stronger economic ties.

(Reporting by Manoj Kumar; Editing by Clarence Fernandez)

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** Defense aircraft maker Hindustan Aeronautics Ltd (HAL) HIAE.NS gains 1% at 4,755 rupees, highest since Sept. 6

** Indian government will buy 12 SU-30MKI aircrafts from HAL for 135 bln rupees ($1.59 billion)

** HIAE up for fifth straight session, gaining 3% so far this week

** Stock set for fourth straight week of gains

** HIAE up 67% YTD

($1 = 84.8430 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru)

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