Defence Ministry Inks Rs 62,700 Crore Deal With HAL For 156 LCH 'Prachand': 90 For Indian Army, 66 For IAF

The Ministry of Defence (MoD) has signed two major contracts with Hindustan Aeronautics Limited (HAL) on Thursday (28 March)2025, totaling Rs 62,700 crore for the procurement of 156 Light Combat Helicopters (LCH) and associated equipment.

The signing of the contracts makes it one of the biggest defense procurement deals.

These contracts are aimed at bolstering the combat capabilities of the Indian Armed Forces, with the helicopters to be deployed by both the Indian Air Force (IAF) and the Indian Army.

The first contract includes the supply of 66 LCHs to the IAF, while the second is for the supply of 90 LCHs for the Indian Army.

The delivery of the helicopters is expected to begin by the third year and will be supplied over a five-year period.

The LCH is India's first indigenously developed combat helicopter, capable of operating at altitudes exceeding 5,000 meters.

According to the Defence Ministry, this helicopter has a large number of components designed and manufactured in India and it is planned to achieve an overall indigenous content of over 65 per cent during the execution of this procurement. 

This project will involve over 250 domestic companies mostly MSMEs and will generate over 8,500 direct and indirect jobs. 

Additionally, the MoD has entered into a contract with Metrea Management for the wet leasing of a Flight Refueling Aircraft (FRA) to support air-to-air refueling training for pilots of the IAF and Indian Navy.

The KC-135 aircraft is expected to be delivered within six months, marking the first-ever wet lease of a FRA by the IAF.

This new deal is part of the MoD’s ongoing efforts to strengthen domestic defense manufacturing.

In total, the Ministry has signed 193 contracts during the 2024-25 period, with a total value surpassing Rs 2,09,050 crore—an unprecedented figure that is nearly double the previous record. Of these, 177 contracts (92 per cent) are with the domestic industry, amounting to Rs 1,68,922 crore (81 per cent).

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