Thursday, August 4 2005 19:45 Hrs (IST) - World Time -

Bangalore: In a major initiative to boost public-private partnership in the aviation sector, Hindustan Aeronautics Limited (HAL) was planning to outsource Rs 600 crore work to Indian industries this year, according to HAL Chairman, Ashok Baweja. "HAL will support the fundamental concept of public-private partnership and has taken administrative and policy measures to put the concept in place," Baweja said during his address at a two-day conference on 'Public-Private Partnership with HAL' organised here.

The outsourcing work, which had grown from Rs 90 crore to Rs 200 crore last year, was targetted to jump to Rs 600 crore this year he said. HAL was therefore keen in tying up with competent partners in the private sector who could ensure strict delivery schedules, Baweja said.

Stating that HAL's order books were very large, he said that the potential work was expected to increase significantly once the offsets flow in after the acquisition plans of Air India and Indian Airlines.

Outsourcing would be largely in the area of volume production, besides design packages, which was another area that was being explored for outsourcing ventures, he said.

The outsourcing pattern would be based on the model followed by many foreign companies due its cost effective advantage and development of core competency.

However, to shape outsourcing the development independence in vendors was of paramount importance, he said.