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Hawk Summary
Hawk Summary
THE CONTRACT/S
IAF
The Licence manufacture of Hawk aircraft and Adour 871 engine will be
undertaken at Aircraft and Engine Divisions respectively. Avionics
equipment (7 CFEs) will be manufactured/procured and serviced by
Hyderabad and Korwa Divisions. Repair, overhaul and maintenance of
airframe and rotables of Hawk aircraft will be undertaken by Overhaul
Division, Bangalore. The Licence manufacture of 49 Adour Mk 871 Engine
will be done in Three Phases in Engine Division HAL.
Phase 1 CKD 7 Engines + 1reserve
Phase 2 SKD 7 Engines
Phase 3 RAW MATERIAL 28 Engines + 6 reserves
1.5.8. The work share of the different Divisions involved in the Hawk
manufacturing Programme is summarized in the table below :
DIVISION PRODUCT
Aircraft Division, Bangalore Airframe & Flight Test
Engine Division, Bangalore Adour 871 engine
Avionics Division, Hyderabad Following CFEs:-
HAL was involved in the preparation of Technical Project Report of the Hawk
Advanced Jet Trainer which was finalised and issued as TPR Issue 03 during
August 2000, which was vetted by Technical Evaluation Committee (TEC) and
approved by MOD in September 2000. This was the basic document against
which RFPs for acquisition & licence production of AJT aircraft were issued.
The proposal received from BAES were negotiated by the PNC and negotiated
prices were put up to CCS for approval. CCS in the meeting held on Sep 03,
2003 approved the following:
2.1. Based on the CCS approval, MOU between the Government of India and
Government of U.K was concluded on 19 March 2004 & subsequently on
26th Mar 04 the following Contracts were concluded :
With BAES
Licence Agreement
Purchase Contract
With RRTM
2.2. The contracts envisage delivery of 24 aircraft from M/s. BAES in fly away
condition to IAF and manufacture of 42 aircraft under licence at HAL through
Transfer of Technology. There are 7 types of avionic equipment (referred to
as CFE), which will be supplied by HAL for integration and fitment on 24 fly
away aircraft.. The licence manufacture of 42 aircraft is in 3 phases, 3 each
from CKD & SKD stage and the balance 36 from Raw Material stage. The
Licence Agreement grants HAL rights to manufacture spares to enable HAL to
support the aircraft. The agreement also provides for Global rights for repair,
maintenance and supply of spares to third countries. The Agreement for
Adour 871 engine provides transfer of technology for manufacture, repair,
overhaul and maintenance. The programme envisages manufacture of 49
Engines in three phases - 8 Engines in CKD Phase, 7 in SKD Phase and 34
in Raw Material Phase .
2.3. In the above background, a Project Team was deputed to M/s BAES works to
ascertain the reuirements for the manufacture of the Hawk Mk 132 aircraft at
HAL and to prepare the Detailed Project Report (DPR) to seek the sanction of
the Board for the investments and to launch the project. The ProjectTeam
visited M/s BAES and M/s Rolls Royce from 5 to 17 Jul 04 and collected
significant inputs and based on the same the DPR is being submitted for the
Management Approval
2.4. The DPR covers the technical features of the aircraft, phase-wise production
programme, the investment towards capital & DRE, the details of Licence fee
and Royalty payable to BAES, assessment of man hours required for
production, the work share between the Divisions of HAL, the estimates of
cost of production, Cash flow and Return on investment and will be the basis
for making the commitment of expenditure subsequent to its approval.
2.5. The Hawk Mk 132 is a dual seat (tandem), transonic, multipurpose aircraft
powered by a single Adour Mk 871 turbofan engine. It provides basic and
advanced weapons training in its training role and can be deployed for ground
attack and air defence roles depending on the range of external stores it can
carry. The location of the fin and rudder forward of the tail plane ensures
Hawk’s consistent and positive spin recovery characteristics. The aircraft is
remarkably insensitive to the external load it can carry in its wide ranging
aerobatic manoeuvres and exhibits very good resistance to departure even
from the normal flight envelope. The aircraft has a range of 1395 nautical
miles with external fuel, has a service ceiling of 13533 metres and has short
take-off and landing of less than 800 metres. The aircraft has an inverted flight
capability of 30 seconds. The cockpit provides excellent field of view and is
equipped with IN/GPS, HUD and HOTAS controls. The aircraft has 7 hard
points to carry external stores with the possible 12 types of combination to
carry the stores. The TTL of the aircraft is 6000 hours with a TBO of 2000
hours. With the anticipated 200-250 hours of flying per annum per aircraft, the
aircraft is likely to be in operation with IAF for not less than 25 years
2.7. The program start date for the project has commenced on 30 th April, 2004.
The deliveries of Direct Supply aircraft will start from the 41st month and
complete by 46th month. The Licence Production deliveries will commence
from 47th month and will complete by 73 rd month and phase wise production
programme is as follows:.
I II III TOTAL
2007-08 1 - 1
2008-09 2 3 9 14
2009-10 - - 24 24
2010-11 - - 3 3
`TOTAL 3 3 36 42
2.8. The cost towards acquisition of 24 fly away aircraft and accompanying
facilities and services to the IAF along with supplies and services to HAL for
Licence manufacture of 42 aircraft cleared by CCS are as under:
Payments to RRTM
For Supplies and Services from HAL (Including royalty for engine
manufacture) Rs. 1964.46 Crorers
2.9. CAPITAL INVESTMENTS
The details of the Capital facilities required for the project are dealt in
Chapter IV. After the study of the detailed plant layout and other inputs
obtained from the visit of the multi-disciplinary Project team to the works of
BAES and Hamble, and various vendors and facilities of Roll Royce, plant
and machinery requirements has been reviewed and incorporated.
The Capital Investments for the Project has been estimated and phased as
under :
Costs of various elements have been estimated based on the information made
available to HAL Team by BAE SYSTEMS. Year wise phasing of Commitment
and expenditure is as follows:-
(Rs. In Crores)
The estimates of DRE are based on the assumption that duty exemption will
be available and the funds will be provided upfront to avoid financing costs.
2.11. The total project cost in respect of HAL Manufacture including the
participation in Direct Supply aircraft towards CFE supplies is as under :
Sl.No Description In £ Million In Rs. Crs Total (Rs. In
Crs)
1 Payments to BAES
Unit Production Cost has been worked out at the level of year of delivery. The
Unit Production cost is separately worked out with and without Capital, DRE
and Licence fees. Details are as under:
AIRCRAFT DIVISION
ENGINE DIVISION
DIRECT INDIRECT OFFICERS
48 19 16
2.14. ASSUMPTIONS:
1 GBP = Rs 77/-
1 Euro = Rs. 52
1 US $ = Rs. 48
Exchange rate variation during the period of the project shall be
payable extra with profit.
i. Custom duty on imported capital items, NSE/ Tooling and other items of
DRE is not considered in the estimate.
ii. Capital & DRE expenditure are assumed to be funded upfront to avoid
the financing costs.
i. Material costs are taken from the kit costs finalised with the BAES.
ii. In respect of Adour Engines the items which are of non RRTM sources
are estimated based on the past procurement data available for MK 811
Engine.
iii) Freight & insurance in respect of BAES supplies have been considered at
the applicable rates for the respective division.
ii) Manhour rate for the duration of the project has been estimated
considering the following
The amount payable to BAES and Rolls Royce towards the Contracts
concluded by the Govt with M/s BAES and RR All Payments falling due to
M/s BAES & RR under the Purchase Contract, Licence Agreements and
Contract for Services shall be made by HAL on behalf of Govt. of India. The
modalities for releasing the payments to HAL to meet this obligation had
been proposed by HAL to M.O.D. vide letter no. MD(BC)/AJT/2004 dated
24th March 04 as follows :
The first payment against the Contracts has been made by the
M.O.D. All the four contracts have been entrusted to HAL for
implementation by M.O.D. vide PC-1 to 43 (11)/1/2001-D(HAL) vol IV dated
9th June 2004.