HAL

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

Further company coverage: HIAE.NS

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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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Adds details, background throughout

By Shivam Patel

NEW DELHI, March 28 (Reuters) - India will buy 156 combat helicopters for its air force and army in a deal worth over $7.3 billion, the defence ministry said on Friday, marking one of the biggest purchases this financial year in the country's drive to modernise its military.

The dual-engine 'Prachand' helicopter manufactured by Indian warplane maker Hindustan Aeronautics Ltd HIAE.NS is powered by engines co-developed with France's Safran SAF.PA and can operate at an altitude of 5,000 metres and above.

India has been making efforts to boost its domestic defence production to achieve self-reliance and shield itself from disruptions in global supply chains after being the world's top arms importer for years, with Russia as its main supplier.

New Delhi's recent defence purchases are driven by its aim to modernise its armed forces by gradually weaning them off their Soviet-origin weapons and boost their capabilities in the face of arch-rival China's growing military strength.

India's defence ministry said it signed two contracts for 66 helicopters for its air force and 90 for its army, and that the supply is expected to begin after three years.

"This decision marks a major boost to India's combat capabilities and self-reliance in defence," Defence Minister Rajnath Singh wrote in a social media post. "Helicopter 'Prachand' is a powerful machine."

The Indian Air Force first began inducting the helicopter into its fleet in 2022. Indian defence officials have previously said that nations in Africa, South East Asia and Latin America have shown interest in buying it from India.

($1 = 85.4850 Indian rupees)

(Reporting by Shivam Patel in New Delhi; Editing by Aidan Lewis, William Maclean)

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** Shares of Hindustan Aeronautics HIAE.NS rise as much as 2% to 4,209 rupees

** ICICI Securities says GE Aerospace delivering first of 99 engines to HIAE for Tejas Light Combat aircraft "allays concerns on the execution front"

** Upgrades stock to "Buy" from "Add", raises TP to 5,000 rupees from 4,065 rupees

** Brokerage expects revenue growth of 25–28% through to FY27, based on the order book estimated at more than 1.3 trln rupees ($15.2 bln)

** Brokerage sees execution of Tejas Mk-1A to benefit other companies involved in the supply chain such as Bharat Electronics BAJE.NS, Astra Microwave ASTM.NS and Dynamatic Technologies DYNM.NS

** HIAE stock up ~35% so far this month, set to snap three straight monthly fall

($1 = 85.7890 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru)

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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) - Safran SA SAF.PA:

• SAFRAN AND HAL SIGN CONTRACT TO PRODUCE FORGED PARTS FOR LEAP ENGINES

Source text: ID:nNDLxXQSX

Further company coverage: SAF.PA

(Gdansk Newsroom)

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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)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Hindustan Aeronautics Ltd HIAE.NS:

Source text: [ID:]

Further company coverage: HIAE.NS

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

• HAL - DAC APPROVAL FOR AON FOR PROCUREMENT OF ADVANCED LIGHT HELICOPTERS

• HINDUSTAN AERONAUTICS LTD - DAC APPROVES PROCUREMENT OF 6 ADVANCED LIGHT HELICOPTERS

Source text: ID:nBSE2jK9lJ

Further company coverage: HIAE.NS

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** Shares of Hindustan Aeronautics HIAE.NS rise 2.1%, Bharat Electronics BAJE.NS gain 2.3% and Mazagon Dock MAZG.NS up 4%

** Uptick after J.P. Morgan initiates BAJE and HIAE with "overweight", citing likely structural growth in the sector due to rising capex

** Says India's defence sector still in the very early stages of a long runway of growth

** Adds recent pull-back in BAJE, HIAE offers attractive entry point

** Names BAJE its preferred pick due to diversified rev and order inflow and long track record as a listed company

** "HIAE's growth potential helped by the fact that it is the main domestic maker of aircraft, engines and helicopters for Indian defence"

** Also starts MAZG with "neutral"

** Says, "While MAZG also faces structural growth opportunities, its core profit margin will normalize and it faces higher competition from other government-owned and private shipyards"

(Reporting by Bharath Rajeswaran in Bengaluru)

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Nov 14 (Reuters) - India's Hindustan Aeronautics Ltd (HAL) HIAE.NS reported a 22.1% rise in second-quarter profit on Thursday, aided by demand for its aircraft from the country's defence ministry.

The state-owned fighter jet manufacturer and maintenance firm's consolidated net profit rose to 15.1 billion rupees ($178.89 million) in the three months ended Sept. 30, from 12.37 billion rupees a year earlier.

HAL had secured an engine manufacturing contract worth 260 billion rupees for the Indian Air Force during the reported quarter.

The ordering activity in the defence sector remained robust during the reported quarter, analysts said.

Revenue boost was driven by continued execution of the manufacturing order book and steady growth in replacements and spares, they added.

The spares and repair business brought in the bulk of sales for the company, its latest annual report showed.

HAL's revenue from operations grew 6% year on year to 59.76 billion rupees in the reported quarter, while its total expenses grew 1.3%.

Defence sector peers Bharat Electronics BAJE.NS reported a 38.4% rise in quarterly profit late last month, while Bharat Dynamics BARA.NS is scheduled to report its results later in the day.

Shares of HAL rose as much as 2.2% after the results were announced. The stock last traded up 1.4% at 4,127.1 rupees.

($1 = 84.4080 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy and Rashmi Aich)

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Nov 8 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HAL - CONTRACT FOR AVIONICS UPGRADE OF DORNIER-228 TRANSPORT AIRCRAFT

Further company coverage: HIAE.NS

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By Nivedita Bhattacharjee

BENGALURU, Oct 14 (Reuters) - India has a plan to carve out a beachhead in the battle for commercial space, officials say: crunching space data, building small satellites and launching them cheaply into orbit rather than challenging heavyweights such as SpaceX head-on.

In particular, it is taking aim at providing cost-effective services and hardware to sectors such as communications, agriculture and commodities, where high-quality data is a precious resource.

At stake is a launch market worth $14.54 billion by 2031, and a related data services market pegged at $45 billion by 2030.

"The world has gone from satellites the size of a Boeing plane to the size of a laptop," said AK Bhatt, director general of the Indian Space Association, an industry body.

"This is a sector that India can win, instead of challenging heavy launches where Elon Musk has dominance. The country already has an historical advantage in data mining and interpretation."

Since February, India has opened its space sector to private players and created a 10 billion rupee ($119 million) venture fund to support space startups. It has also unveiled plans for crewed space exploration and a mission to Venus, but the focus is on developing commercial ventures.

In many ways it will be an uphill fight. Other countries such as Japan and China have advanced space industries, and designs on cheap launches. Spaceflight itself is difficult; the startup landscape globally is littered with failed boosters and satellite designs.

For India, "the tech is there and the ability is there... but space is tricky and very competitive, and while private companies have shown that they can create a niche for themselves, we need more proof of concept," said Namrata Goswami, a space policy expert at Arizona State University.

She added that the Indian government must be an "anchor customer" for private industry.

Most of the revenue growth is expected to come from so-called downstream data applications, said Pawan Goenka, chairman of IN-SPACe, India's space regulatory body.

Those involve crunching data from orbit to help improve crop yields on earth, build more accurate navigation systems, bolster telecommunications, tighten border security and fight climate change, Goenka said.

Indian companies such as Bellatrix Aerospace, Pixxel, Agnikul Cosmos, Dhruva Space and others are already building or have launched small satellites or satellite components.

India's space agency, ISRO, last month completed the third and final developmental flight for its Small Satellite Launch Vehicle. The design will then be handed to private companies.

"The end uses of Earth observation are vast," Goenka said. "What we are doing is address various parts of the puzzle."

Bengaluru-based SatSure, for example, has been providing real-time satellite data to the Airports Authority of India to enhance air traffic management and safety, helping planes avoid weather hazards. The project is expected to save 37.5 billion rupees ($446 million) in fuel costs for airlines annually by 2025 and result in a roughly 70% reduction in airport process planning timelines, the authority said.

Earth observation (EO) satellites - orbiting cameras and sensors - can unlock similar savings in other areas, said the company's chief executive, Prateep Basu.

"EO is solving problems that span across utilities, navigation, trading, industries, helping save millions of dollars," Basu said.

GOVERNMENT PUSH

Since the government opened up the market, companies big and small have jumped in, with legacy IT firms like Infosys INFY.NS investing in satellite imaging company GalaxEye Space Solutions, Google-backed GOOG.O Pixxel signing contracts with NASA, and Baring- and Promus-backed SatSure taking on clients such as HDFC Bank HDBK.NS and global seed company Syngenta.

Dhruva Space became one of the first to be handed a permit to operate satellite communication centres on earth - to date the dominion of ISRO.

"India is a software powerhouse and produces some of the best minds in the world in data science, machine learning, and artificial intelligence. The space downstream market is, at the end of the day, a software play," said Aravind Ravichandran, founder of France-based advisory firm Terrawatch Space.

The consultancy Euroconsult forecasts that between 2023 and 2032, about 26,104 small satellites - weighing less than 500 kilogrammes (1,100 lb) - will be put in orbit, averaging 1.5 tons of daily launch mass. The firm expects the overall small satellite industry to be worth $110.5 billion in the next decade.

Indian space companies have already seen an influx of funding - $126 million in 2023, a 7% increase from the $118 million raised in 2022 and an increase of 235% from the $37.6 million raised in 2021, according to Tracxn data.

But India has only about 2% of market share in commercial space activities, demand is still largely dependent on global clients, and well-established U.S., Russian and Chinese companies are formidable rivals.

"To truly make a dent, (Indian) solutions have to scale to the rest of south Asia and then to the rest of the world," said Pixxel founder and CEO Awais Ahmed.

($1 = 84.0560 Indian rupees)

(Reporting by Nivedita Bhattacharjee in Bengaluru; Editing by Gerry Doyle and Kim Coghill)

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Sept 13 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• RAJALAKSHMI MENON NAMED PART-TIME OFFICIAL DIRECTOR (GOVERNMENT NOMINEE DIRECTOR)

Source text for Eikon: ID:nBSE1mrlQb

Further company coverage: HIAE.NS

(Reporting by VijayDattaram Malkar)

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

• HAL - DAC APPROVAL FOR AON FOR PROCUREMENT OF DORNIER-228 AIRCRAFT

Source text for Eikon: ID:nBSE7f4JZ9

Further company coverage: HIAE.NS

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** Shares of Hindustan Aeronautics Ltd HIAE.NS up 3.1% at 4,832.35 rupees

** India govt's cabinet committee on Monday approved the purchase of 240 aircraft engines from HIAE in a deal worth 260 billion rupees ($3.10 billion)

** Analysts tracking defence equipment maker rate it "buy" on avg, same as peers Bharat Dynamics BARA.NS and Bharat Electronics BAJE.NS - LSEG data

** HIAE's 72% YTD jump leads gains among defence peers

($1 = 83.9450 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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Aug 30 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• SAFHAL HELICOPTER ENGINES, CO SIGNED AIRFRAMER CONTRACT

Further company coverage: HIAE.NS

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Adds quotes in paragraphs 6 and 7, details and background throughout

By Krishna N. Das

NEW DELHI, Aug 20 (Reuters) - Prime ministers of India and Malaysia sought to reset relations between the two countries on Tuesday as they agreed to boost trade, movement of workers and the use of their own currencies to settle bilateral transactions.

Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.

That had also hit purchases of Malaysian palm oil by India, the world's biggest buyer of edible oils like palm.

But the Malaysian approach has changed under Prime Minister Anwar Ibrahim, who took office in 2022 and previously told Reuters he was keen to have good ties with India.

The two countries started settling trade in their own rupee and ringgit currencies in April last year, and India's palm oil imports from Malaysia has also increased.

"With the support of Prime Minister Anwar Ibrahim, there has been a new momentum and energy in our partnership," Modi said, as Anwar stood by his side during his first visit to New Delhi as prime minister.

"Today we have decided that our partnership will be elevated to a 'Comprehensive Strategic Partnership'. We believe that there is still a lot of potential in economic cooperation. Bilateral trade and investment should be expanded."

Modi noted that Malaysia had invested $5 billion in India in the past year and identified semiconductors, financial technology, the defence industry and artificial intelligence as areas of possible cooperation.

Anwar said his country would reinvigorate relations with India in all fields and that their potential had not been tapped in the past few years.

Indian foreign ministry official Jaideep Mazumdar told a press conference the country would make a one-off export of 200,000 metric tons of non-basmati rice to Malaysia, making an exception to a ban on such shipments.

Mazumdar said India is also keen to sell defence equipment to Malaysia, as well as aircraft manufactured by state-run Hindustan Aeronautics Ltd HIAE.NS.

The two countries also agreed a framework for the welfare of Indian workers going to Malaysia, which sources labour from some 15 countries including India for its palm plantations and other industries.

There are already some 140,000 Indian workers in Malaysia, the highest ever, and this total could rise as India seeks job opportunities for people at home and abroad.

(Reporting by Krishna N. Das in New Delhi; Additional reporting by Tanvi Mehta and Mayank Bhardwaj; Editing by Shri Navaratnam and David Holmes)

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Aug 14 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HINDUSTAN AERONAUTICS Q1 CONSOL NET PROFIT 14.37 BILLION RUPEES

• HINDUSTAN AERONAUTICS Q1 CONSOL REVENUE FROM OPERATIONS 43.48 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: HIAE.NS

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