Hindustan Aeronautics Limited (HAL) will expand its production capacity for engines used in India's fighter aircraft and helicopters, with new facilities planned at its Koraput Division in Odisha. Defence Minister Rajnath Singh announced the expansion on Tuesday while witnessing the delivery of HAL's 2,000th aero-engine. The measures include increasing annual production of AL-31FP engines used in the Indian Air Force's Su-30MKI fleet and establishing a second production line for Shakti engines used in indigenous helicopters.

HAL will increase its annual capacity for AL-31FP engines from 30 to 50 engines. The expansion is expected to cost ₹335 crore and is aimed at strengthening the country's ability to produce engines required for the Su-30MKI fleet. The government had placed an order for 240 AL-31FP engines with HAL in 2024. Singh said HAL delivered the first engine under the order ahead of schedule despite supply-chain disruptions and challenges related to raw materials.

The company has so far delivered 63 engines against a target of 60 by the end of the second year of the order, according to the Defence Minister. HAL's Koraput Division has a long history of aero-engine manufacturing, having been established in 1964. Over the years, the facility has produced engines for aircraft including the MiG-21, MiG-27, MiG-29 and Su-30MKI. It has also overhauled more than 9,000 engines, helping extend their operational service life.

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Alongside the fighter-engine expansion, HAL will establish a second production line for Shakti engines. The new facility is expected to cost ₹218 crore and, once fully established by 2028-29, will have the capacity to produce up to 100 engines annually. Shakti engines are used in helicopters such as the Dhruv Advanced Light Helicopter and the Prachand Light Combat Helicopter, making the additional production capacity significant for India's indigenous helicopter programmes.

The expansion is part of a wider push to strengthen India's domestic capabilities in aero-engine design, manufacturing, testing and maintenance. Singh said developing indigenous engine capabilities would be particularly important for the Advanced Medium Combat Aircraft programme. He also highlighted a proposed investment of around ₹5,000 crore and plans for the country's first indigenous high-thrust engine testing facility. Work with Mishra Dhatu Nigam Limited is also planned to develop critical raw materials domestically.

Singh stressed that reliable propulsion is essential for advanced aircraft and described the engine as the heart of an aircraft. He called for sustained investment in engine development, specialised testing and critical materials, along with greater participation from private companies, micro, small and medium enterprises and research institutions. The new HAL capacity is expected to strengthen domestic engine production while supporting India's broader efforts to reduce dependence on external sources for critical aerospace technologies.

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