HAL may deliver 10 ALH to ONGC, starting 2007

Public sector aeronautics firm, Hindustan Aeronautics Limited, may have finally found a second large buyer for its much vaunted advanced light helicopter after the armed forces.

Sources on the ALH project say ONGC, which recently has publicly expressed interest in the aircraft "is seriously considering the option of purchasing up to 10 ALH".

If the deal goes through, the public sector oil firm's order would be the second largest order HAL got for the helicopter, after the 12 odd aircraft it has sold to the armed forces.

"Delivery is likely to start in two years for ONGC", sources said, which shows the interest is indeed serious, for a delivery schedule to have been already aired.

HAL and ONGC recently signed a memorandum of understanding, "to cooperate on a range of activities" including exploiting HAL's expertise in industrial and marine gas turbine engines. Oil and Natural Gas Corporation (ONGC) had "expressed interest" in the aircraft, HAL had said late last month in a release.

It is not clear if ONGC's "interest" has found mention in the MoU which ONGC's chairman and managing director, Subir Raha and HAL's chairman, Ashok Baweja, signed on April 29. But ONGC, presently using aircraft from Pawan Hans, a state run helicopter charter service, could use the ALH for both onshore and offshore work, HAL's officials say.

In another statement, HAL said it had successfully cleared various tests that ONGC had required it to take, including a landing on an oil rig.

In a statement, HAL said earlier this month, "ONGC, which has a pressing need for medium class helicopter for its offshore operations, required a demonstration of landing at its production platforms, floating rings and unmanned rigs."

The oil firm "required this to be done with maximum possible passengers, while maintaining within Performance Class I criteria. This is a safety criteria which requires the helicopter performance and design to be such that the helicopter can fly away or land safely in case of one engine failure. DGCA, the country's civil aviation regulator, has now made Class I performance mandatory for offshore operations."

The Indian Airforce had carried out extensive trials of the ALH in offshore role successfully in 2003 itself. However, a demonstration was made again, at ONGC's furthest field, Bombay High South, with ONGC observers onboard in April this year.

The demonstration showed "beyond doubt" that Dhruv could meet Performance Class I criteria with 12 to 14 passengers even while operating to ONGC's furthest oil field "ex Juhu, Mumbai," the statement said.

HAL also says, "no other medium class helicopter currently deployed in offshore operations ex Mumbai can match this performance" of the ALH, a twin engine five tonne class aircraft.

While considered a superior aircraft in its class, the ALH is yet to bring in serious profits for HAL. The helicopter, which HAL is pitching as a multi-role aircraft capable of both military and civil applications, is yet to find customers willing to buy the aircraft in large enough numbers. If the ONGC order came through, it might just turn the tide for the aircraft.

In February, HAL put up a display of the ALH for visiting diplomats from eight different Latin American countries, "to promote our product", a senior HAL official had said.

"No orders have come in yet... they wished to see the performance of the aircraft, and it was an opportunity for us to demonstrate its superiority," he had said.

Chile, where HAL and its commercial partner for the ALH, Israel Aircraft Industry, made their first major effort to sell the ALH, is yet to decide on its choice of aircraft. The Chilean armed forces are also said to be evaluating rival aircraft from defence firms such as Bell Textron.

A top delegation from Chile, led by the country's defence minister, Jaime Ravinet, visited HAL's helicopter division this month, but no concrete decision has been made public.

The ALH's five variants include a military helicopter and an ambulance. HAL has sold two of the aircraft to Nepal, has a firm order from the state of Jharkhand and is negotiating a sale to Israel.

The twin engine aircraft is powered by an engine supplied by Tourbomeca, a group company of the French Snecma Group, a propulsion systems and equipment maker.

It will also be the first helicopter to be powered by a more powerful engine, the Ardiden, which Tourbomeca and HAL are co-developing.