India Approves Major Defence Deal: 240 Aero-Engines for IAF, Semiconductor Unit in Gujarat

In a major boost to India’s defense capabilities, the Cabinet Committee on Security has approved the procurement of 240 aero-engines for the Indian Air Force’s (IAF) Su-30 MKI fighter jets. The deal, valued at ₹26,000 crore, will see Hindustan Aeronautics Limited (HAL) supply the AL-31FP engines under the ‘Buy (Indian)’ category.

The delivery of these engines is expected to commence after a year and will be completed over an eight-year period. Notably, over 54 percent of the engines’ components will be sourced domestically, thanks to the indigenization of key parts. This initiative will be undertaken at HAL’s Koraput division.

The Su-30 MKI, a powerful and strategically vital aircraft in the IAF’s fleet, will benefit significantly from this procurement. The supply of these engines by HAL ensures the continued operational readiness of the IAF, bolstering the nation’s defense preparedness.

In a separate development, the Union Cabinet, chaired by Prime Minister Narendra Modi, has greenlit the proposal by Kaynes Semicon Pvt Ltd to establish a semiconductor unit in Sanand, Gujarat. This project, with an estimated investment of ₹3,300 crore, will have a daily production capacity of 60 lakh chips.

The chips manufactured at this facility will cater to a diverse range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones. This significant investment signifies India’s commitment to building a robust domestic semiconductor industry, reducing dependence on foreign imports and fostering self-reliance.

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