HAL will go for best cost option

Nagpur: Maharashtra government may be wooing Hindustan Aeronautics Ltd (HAL) to set up its proposed helicopter unit in Butibori industrial estate but other states too are in the fray. The company is weighing all options before it including use the land it already has or request some from the landbank of ministry of defence.
In such a condition, Maharashtra needs to come up with an offer that HAL would not be able to refuse, sources in the know said. HAL is expected to consider the offer only if it leads to reducing cost of production for the choppers. Apart from Maharashtra, a number of other states including Gujarat, Madhya Pradesh and Andhra Pradesh are pursuing HAL that is scouting for a 1,000 acre tract to set up factory for making light combat helicopters (LCH) and light utility helicopters (LUH).
Apart from buying land from a state government, HAL is also evaluating other options. HAL may also consider acquiring land on its own if the unit has to come up at a strategic location, said a source. Each option has its own pros and cons with respect to technical, logistical and financial aspects.
26/12/11 Shishir Arya/Times of India

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Categories: Indian Aviation- In General Dec 2011, New Dec 2011