The state-run Hindustan Aeronautics Ltd. (HAL) was not meeting the expectations of the Indian Air Force (IAF) as it was not completing orders in time, Minister of State for Defence MM Pallam Raju said on Friday.
“HAL has done a commendable job in absorbing technologies from Russia, France, Britain and Germany. But it is not meeting the expectations of the IAF, as it is not producing in time. It is a question of project management as it is handling too many programmes at a time,” Raju told reporters on the margins of a defence expo here.
In this context, Raju said the ministry was waiting for the recommendations of the B.K. Chaturvedi Committee on restructuring HAL to streamline its operations and focus on priorities.
“The committee is looking into the company’s capacity constraints in executing orders in time. Its competence or facilities is not the issue. We do not want it produce minor components like nuts and bolts, which it has been doing,” Raju said.
“It should be more efficient in executing projects and deliver more in time,” the minister said at the inaugural session of the second edition of the micro, small and medium enterprises (MSME) Defence Expo 2012.
The defence ministry had set up the seven-member committee headed by Chaturvedi, a former cabinet secretary and Planning Commission member, to restructure and strengthen HAL for preventing cost and time over-runs.
The Rs.13,000-crore HAL has been facing capacity constraints and has been behind schedule in executing projects despite a huge order book till 2020.
On divestment of the state-owned defence enterprise, Raju said the government had the will (to divest) but the process was going through various procedures.
Raju’s observations came on a day when R.K. Tyagi took over as the chairman of HAL, which remained officially headless for six months after Ashok Nayak retired on superannuation in August 2011.
The company’s MiG complex managing director P.V. Deshmukh was acting chairman after Nayak retired.
Tyagi was chairman and managing director of state-run Pawan Hans Helicopter Ltd. from May 2007 to February 2012.
Incidentally, Defence Minister A.K. Antony Wednesday told HAL to realign its business processes for strategic alliances and joint ventures and step up research and development efforts to remain globally competitive.
“HAL should partner with design laboratories such as DRDO (Defence Research and Development Organisaiton) and CSIR (Council of Scientific & Industrial Research) for the development of indigenous aircraft, engines and systems,” Antony said at a meeting of the parliamentary consultative committee in New Delhi.
“It should adopt best practices followed by global leaders in the field of project management, quality control systems, vendor deployment and supply chain management,” he added.
The Chaturvedi panel has been asked to suggest how best the spin offs from HAL order book can be earnest to ensure greater involvement of the private industry in the defense sector.
-via The Economic Times.
hi
This is the one of the fine examples of the white elephant .
This organisation is run by the trade unions , and while recruiting they feels that “only Kanadiga’s” to be recruited in Bangalore HAL . And while recruiting even in guards posts the trade union is asking for the fund, if any security guard who can afford the 5 lacks rupees he will get the job .and so on to all the posts .
All most in a year some one will get arrested in the name of bribe in HAL ,
After the retirement of their top director he is not permitted inside the HAL, because he is spying for some other opponents.
Their pilots are landing the Aircraft on the flats of the “kagidspura area “of the Bangalore . And DGCA is cancelled the flying permission of HAL .
Their “Droov”A/c is counting down due to the chaises crack problems .
while recruiting of the ex-service man , they have to under go 2 years contract periods rest other’s can easily walk in HAL .
what more you wants ?
But still they also enjoying the “Navatana ” titles .
If you go by seniority or by reservation system , you ought to go such ordeal. Deep selection & merit be for promotion with time bound target to achieve success with speed.
Change selection & promotion system in the nation interest