HAL Revises LCA Mk1 Contract: Delivery Delays Push Cost to Rs 6,542 Crore

Aircraft-maker PSU, Hindustan Aeronautics Ltd (HAL) has announced that it has amended the contract for the light combat aircraft (LCA) Mk1 final operational clearance (FOC) variant, originally signed on December 23, 2010.

Due to changes in delivery schedules, the revised contract value has increased from Rs 5,989.39 crore to Rs 6,542.20 crore. Being manufactured by the Bengaluru-based HAL, LCA is India's homegrown fighter plane.

HAL is supposed to provide 16 LCA Mk1A fighter planes to the Indian Air Force in 2025. Project-related concerns had already caused the first delivery planned for March 2024 to be delayed. Its goal is to provide roughly 83 such jets by 2029.

Shares of Hindustan Aeronautics Ltd are trading higher by 2.61% at Rs 4271.00 on NSE.