LCA Tejas Mk1 & Mk1A - News and discussions

MoD should stop giving preferential treatment to DPSUs if we want any kind of improvement. The Private entities need a level playing field actually, not only on paper. Once that is properly enforced, we will surely see results. It will also save us big amounts.

Plus bring in an ordinance to dissolve any kind of Labour Unions in Strategic DPSUs. Penalise DPSUs for delays and non delivery.

I am sure half of OFBs and even HAL will not survive another 5 years even.
Hey, I think I have to rethink my position on HAL now. :)
 
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Only survive, not thrive? In my opinion, there's a need to break up HAL into at least 3-4 cos in the near future. One catering to manufacture FA's & Trainer FA's, 2nd to manufacture Civilian Aircrafts like the RTA & transport aircraft / tankers etc for the armed forces. A 3rd co to manufacture helicopters for armed forces & civilian needs including the turbofans needed for such operations and a fourth exclusively to develop & manufacture turbo fans / turbojets including its development which means amalgamation with GTRE.

The first co should see amalgamation with ADA too & the 2nd with NAL with Cross holdings between all 4 cos. HAL in its present form is simply too large, unwieldy and a jack of all trades.

I agree. One for UAVs, UCAVs and other fixed wings. One for rotary wing. One for fighter jets. But I suppose this will require quite a bit of new funding in order to separate all the infrastructure.

OTOH, if HAL reduces itself to only an integrator and privatises manufacturing as a whole, it would be much better.

ADA should remain independent. It's under DoD after all.
Aeronautical Development Agency
 
For Dassualt all payment obligations met, when it comes to HAL not so much.

So what happens when HAL tasked with LCA Mk1A, and LCA MKII, LCH, ALH, LUH. HTT40, Jag Upgrade, Mirage Upgrade, Mig29UPG support, PSLV GSLV subsystems, Cheetak Cheetah, Cheetal overhaul, doesn't have working capital.

How does HAL buy high dollar subsystems F125N, FG404/414, Elbit Radars , sextant mfds, to raw materials like GRCF pre peg sheets and aluminum stampings, cable harnesses , connectors? Who pays these vendors and how?

Next obvious question - is this a new phenomenon or a has this happened over the years where payments in turn of 15000cr have been with held? Any such precedence in UPA I, II, NDA I times?

If MoD was not capable of paying it's dues, why did exact the services in that period more importantly when it was going to withhold payments in tune of 15000 cr why would it exact dividends and buyback in tune of 15000cr from HAL.

that doesn't seem just oversight or poor allocations, your make HAL pay 15000cr and withhold another 15000cr, that seems quite well planned, doesn't it?

Also is MoD going to clear the payment with interests? if not that is a 1200cr daylight robbery, isn't it?

We will talk about it when it happens.

As per HAL's own admission, they don't have to worry about working capital until next FY. They borrowed money only to pay salaries.
 
I agree. One for UAVs, UCAVs and other fixed wings. One for rotary wing. One for fighter jets. But I suppose this will require quite a bit of new funding in order to separate all the infrastructure.

OTOH, if HAL reduces itself to only an integrator and privatises manufacturing as a whole, it would be much better.

ADA should remain independent. It's under DoD after all.
Aeronautical Development Agency
Sturucture already exists:

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ARDC Structure

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Joint Venture units:

https://hal-india.co.in/Joint Venture Companies/M__29
 

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ADA should remain independent. It's under DoD after all.
Aeronautical Development Agency


That's why I wrote it ought to change. Show me one defence agency into R&D purely independent of a manufacturing set up. Take the case of any Aircraft Manufacturer across the world. Aren't a great deal of the problems we're facing with the LCA on account of the fact that the developer and the lead integrator are 2 separate entities, without getting into the reasons why ADA was formed and functioned the way it did all this while.

What's the guarantee we won't be facing such a situation with forthcoming programs like the UCAV, AMCA etc ( given that HAL won't be the lead integrator for AMCA, as per current reports) ?
 
We will talk about it when it happens.

As per HAL's own admission, they don't have to worry about working capital until next FY. They borrowed money only to pay salaries.
Are you kidding?

“Our cash in hand is in the negative, we’ve had to borrow close to Rs 1,000 crore as an overdraft (OD). By March 31, we’ll have minus of Rs 6,000 crore, which becomes unsustainable. We can borrow for day-to-day work, but not for project purchases.”

Do you understand what working capital is? It's not capital for day to day salaries, its capital for day to day operations?

The important questions still remains:
Precedence?
15000 cr Dividend/buy back?
Withholding HAL dues but clearing Dassult?
Interest cost?

The current DM is not even fit for leading textile ministry let alone defense , i.e. if this truly is eff-up and not by design.
 
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That's why I wrote it ought to change. Show me one defence agency into R&D purely independent of a manufacturing set up. Take the case of any Aircraft Manufacturer across the world. Aren't a great deal of the problems we're facing with the LCA on account of the fact that the developer and the lead integrator are 2 separate entities, without getting into the reasons why ADA was formed and functioned the way it did all this while.

What's the guarantee we won't be facing such a situation with forthcoming programs like the UCAV, AMCA etc ( given that HAL won't be the lead integrator for AMCA, as per current reports) ?

DRDO is like DARPA. It should stay as is. It works.
 
DRDO is like DARPA. It should stay as is. It works.
I was referring to ADA. Further, there are a lot of laboratories under DRDO which can or ought to be amalgamated with OFB, other DPSU's, etc.

DARPA is into cutting edge stuff. Similar stuff having been identified, one should ensure that all such labs under DRDO continue in the same mode.OTOH , Do Tell me how does one justify ARDE and other such labs being independent research agencies in this day & age.
 
Are you kidding?

“Our cash in hand is in the negative, we’ve had to borrow close to Rs 1,000 crore as an overdraft (OD). By March 31, we’ll have minus of Rs 6,000 crore, which becomes unsustainable. We can borrow for day-to-day work, but not for project purchases.”

Do you understand what working capital is? It's not capital for day to day salaries, its capital for day to day operations?

The important questions still remains:
Precedence?
15000 cr Dividend/buy back?
Withholding HAL dues but clearing Dassult?
Interest cost?

The current DM is not even fit for leading textile ministry let alone defense , i.e. if this truly is eff-up and not by design.

They have money for projects until next FY. And before that they will get 14,000Cr. We can talk about it in April because that's when HAL will actually be in trouble.
 
They have money for projects until next FY. And before that they will get 14,000Cr. We can talk about it in April because that's when HAL will actually be in trouble.
As I said, payment obligations for Dassult met, HAL delivered goods and services languishing for 1.5 years.
If anything DM should resign .
 
I was referring to ADA. Further, there are a lot of laboratories under DRDO which can or ought to be amalgamated with OFB, other DPSU's, etc.

The worst idea ever. What you are saying is ADA should develop a jet, and then the production company associated with ADA will get direct control over production without any competition. Hence a monopoly.

In the current system, ADA will develop a jet and production companies have to compete to become the lead integrator.

If R&D companies get linked to a manufacturing company, then competition ends. That's what's happened to the US, with LM swallowing up everything because one company controls both R&D and production. LM is buying off US Generals. US Generals work for projects run by LM from the govt's side, and upon retirement they are recruited by LM. What happens in between is anybody's guess.

Our system is better in that respect since R&D is directly under MoD control under a DARPA like setup. What we need now is multiple teams within ADA competing with different designs, like they do in China. I think they are doing something like that, but not as much as China.

DARPA is into cutting edge stuff. Similar stuff having been identified, one should ensure that all such labs under DRDO continue in the same mode.OTOH , Do Tell me how does one justify ARDE and other such labs being independent research agencies in this day & age.

DRDO will slowly get pushed into cutting edge stuff while private industry will swallow up the rest. This will take time, but it's where DRDO is headed towards. For example, the FICV and FRCV will be headed by private companies with DRDO being reduced to a development partner.
 
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The worst idea ever. What you are saying is ADA should develop a jet, and then the production company associated with ADA will get direct control over production without any competition. Hence a monopoly.

In the current system, ADA will develop a jet and production companies have to compete to become the lead integrator.

If R&D companies get linked to a manufacturing company, then competition ends. That's what's happened to the US, with LM swallowing up everything because one company controls both R&D and production. LM is buying off US Generals. US Generals work for projects run by LM from the govt's side, and upon retirement they are recruited by LM. What happens in between is anybody's guess.

Our system is better in that respect since R&D is directly under MoD control under a DARPA like setup. What we need now is multiple teams within ADA competing with different designs, like they do in China. I think they are doing something like that, but not as much as China.



DRDO will slowly get pushed into cutting edge stuff while private industry will swallow up the rest. This will take time, but it's where DRDO is headed towards. For example, the FICV and FRCV will be headed by private companies with DRDO being reduced to a development partner.
I think pretty much at end of the day - what ever the Setup is - Everyone wants Decisive Decision Making with Structure Performance and Delivery (Yes I know - im asking for too much :( )
 
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I think pretty much at end of the day - what ever the Setup is - Everyone wants Decisive Decision Making with Structure Performance and Delivery (Yes I know - im asking for too much :( )
Given the new coming to light, Yes ; you are asking for too much. :)
When the setup is not paid by the MoD for it's dues, where the hell will it develop systems from?

this hopefully should open the pandora's box for LCA's dismal development rate; If PSU was treated this way; god know what MOD did to ADA.
 
Does DARPA have reservation? Freaking idiots have reservation in a research organisation. No wonder it will always be an organisation which is a fat lady and never a lethal machine.

The reservation is fine in this case.

The only real relaxation is the age limit, which is 28 for General, 31 for OBC and 33 for SC/ST. And in the personal interview round where they have to score 60% versus 70% for General. In terms of actual knowledge, it's the same for all categories. Everything else is the same, like 60% in your degree and your GATE score.
 
BS. Show a precedence of this nature and scale.

You won't find it. Because DPSUs do not really wash dirty linen in public.

As I said, it will become a problem only next FY. Let's talk about it when it actually becomes a problem. Right now, it's all just politics.