HAL, EDC talks in final stages

PANAJI: Hindustan Aeronautics Limited (HAL) is expected to ink the deal to take over the defunct Goa Auto Accessories Limited (GAAL) in August. Talks to acquire EDC’s shareholding in GAAL are in the final stages and HAL is keen to complete the negotiations, Panaji MLA Sidharth Kunkalienkar said. HAL and French firm Safran recently signed an agreement to form a 50:50 joint venture and set up a new repair and overhaul facility in Goa that would be operational by 2019.
“We are confident and the discussions should be finalized by next month. We are in talks only with HAL at present,” Kunkalienkar said, adding, “Initially it will be for overhaul and maintenance of helicopter engines.”
Earlier this month, on the sidelines of the Farnborough Airshow in the United Kingdom, HAL signed a memorandum of understanding with Safran S A to create a joint venture firm in Goa, with sources saying that the development was part of the 50% defence offset clause in the $8.8 billion deal to purchase 36 Rafale fighter jets. According to the memorandum of understanding, HAL and Safran will undertake maintenance, repair and overhaul of the over 500 Safran engines in use with the Indian defence and para-military force helicopters.
The engines which would be repaired and overhauled in Goa are HAL-Turbomeca’s jointly manufactured Shakti engine and Turbomeca’s TM 333 2B2 engine which are being used by the HAL Dhruv and HAL Light Combat Helicopter.
EDC officials said HAL would acquire the land and assets of GAAL in Honda, Sattari which is about 40 km from Panaji.
Once the GAAL facility is taken over, the new facility to overhaul rotary craft engines will take around three years to become operational, HAL officials said.