Hindustan Aeronautics Limited (HAL) is actively pursuing a strategy to manufacture the AL-31FP engines for the Sukhoi Su-30MKI aircraft entirely within India, including the sourcing of materials. This initiative is part of a broader push towards self-reliance in defence manufacturing, aligning with the Indian government's "Atmanirbhar Bharat" (Self-Reliant India) vision.

On September 9, 2024, HAL signed a significant contract with the Indian Ministry of Defence to produce 240 AL-31FP aero engines at a cost of approximately ₹26,000 crore (around $3.1 billion). The engines are scheduled for delivery over an eight-year period, with an initial production rate of 30 engines per year from HAL's Koraput division.

The contract stipulates that the engines will feature over 54% indigenous content. HAL aims to increase this local manufacturing share to more than 63% by the end of the contract period. Currently, about 40% of the work is being done by Indian industries, which is expected to rise to over 50% within the next two to three years.

This push for indigenization is particularly crucial given recent supply chain disruptions caused by geopolitical tensions, such as the Russia-Ukraine war, which have affected the availability of spare parts for Russian-made aircraft in India. By enhancing local manufacturing capabilities, HAL not only aims to bolster its operational readiness but also seeks to establish a sustainable ecosystem for defence manufacturing in India.

HAL's Koraput division has been recognized for its advanced manufacturing capabilities and has developed the necessary infrastructure to produce these complex aero engines from raw materials to final assembly. This facility is equipped with cutting-edge technology and skilled personnel trained in modern manufacturing techniques.

The successful delivery of the first AL-31FP engine within weeks of signing the contract highlights HAL's commitment and competency in aerospace manufacturing. The company has expressed intentions not only to meet domestic needs but also to position itself as a competitive player in international markets by potentially exporting these engines.

HAL's initiative to manufacture AL-31FP engines entirely in India represents a significant step towards achieving self-reliance in defence production. By increasing indigenous content and involving local industries more deeply in the supply chain, HAL aims to enhance both operational capabilities for the Indian Air Force and contribute positively to India's defence manufacturing ecosystem. This move is expected to have long-term benefits for national security and economic growth within the aerospace sector.