HAL Signs ` 8,000 Crore Per­for­mance Based ALH Con­tract with IN and ICG

India Strategic - - INDUSTRY -

BAN­GA­LORE. HAL is en­ter­ing into an era of Per­for­mance Based Con­tract­ing for he­li­copters. The Govern­ment of In­dia has cleared a pro­posal worth around 8,000 crore for ac­quir­ing 32 ALH Dhruv to boost the mar­itime se­cu­rity ca­pa­bil­i­ties of the In­dian Navy (IN) and In­dian Coast Guard (ICG). Of the 32 he­li­copters to be built by HAL, 16 each would be shared by both the ser­vices. The Per­for­mance Based Lo­gis­tics (PBL) sup­port for five years for 16 he­li­copters for ICG is the unique fea­ture of this con­tract. “The PBL is the pur­chase of Lo­gis­tics sup­port as an in­te­grated, af­ford­able, per­for­mance pack­age de­signed to op­ti­mise sys­tem readi­ness and meet per­for­mance goals for the prod­uct through long-term sup­port ar­range­ments with clear lines of au­thor­ity and re­spon­si­bil­ity”, says Mr T Su­varna Raju, CMD, HAL. The PBL is emerg­ing as a pre­ferred ac­qui­si­tion strat­egy for de­fence ac­qui­si­tion and as­set man­age­ment. PBL en­sures the avail­abil­ity of prod­ucts to the cus­tomer while the re­spon­si­bil­ity gets trans­ferred to the con­trac­tor. The PBL en­vis­ages re­wards or penal­ties based on the per­for­mance. The con­tracts were signed by Mr V. Natara­jan, Gen­eral Man­ager (He­li­copter Divi­sion), HAL and Mr Jayant Sinha, JS & AM (MS), MoD, in New Delhi, March 29. Se­nior ex­ec­u­tives from HAL, the In­dian Navy and the In­dian Coast Guard were present on the oc­ca­sion.

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