**HAL Restructuring on Cards as Delays Mount in Defense Deliveries**
*By Akash Pandey | Sep 29, 2025, 11:04 AM*
The Indian government is considering a major restructuring of Hindustan Aeronautics Limited (HAL) to improve efficiency and expedite military deliveries. This move comes amidst growing concerns over HAL’s massive ₹2.7 lakh crore order book, which has been limiting its capacity and causing delays in critical projects like the Light Combat Aircraft (LCA).
### Operational Overhaul: HAL to be Divided into Independent Entities
To address these challenges, the government is exploring the possibility of dividing HAL into independent entities, each focusing on different facets of aeronautical manufacturing. An external consulting group has been brought on board to examine HAL’s current organizational structure and operations. They have begun engaging with senior management as part of a broader effort to create a roadmap for enhancing the company’s efficiency and speeding up delivery timelines for military orders.
### Order Challenges: Order Book Raises Efficiency Concerns
HAL’s current order book, which includes fighter jets, utility helicopters, attack helicopters, and engines, stands at more than eight times its annual revenue. This enormous backlog raises serious concerns about HAL’s capacity to meet delivery schedules efficiently. The company is already experiencing delays in supplying Light Combat Aircraft to the Indian Air Force (IAF), which has heightened alarms over the IAF’s shrinking combat strength.
### Looking Ahead: Restructuring to Enhance Operational Efficiency
The overloaded order book has also become a significant hurdle for HAL’s participation in the Advanced Multirole Combat Aircraft (AMCA) program, aimed at developing next-generation fighter jets. The proposed restructuring is expected to address these operational bottlenecks, improve HAL’s overall efficiency, and accelerate military deliveries, strengthening India’s defense manufacturing capabilities.
https://www.newsbytesapp.com/news/business/modi-government-eyes-hal-overhaul-to-speed-up-defense-deliveries/story
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