Bharat Electronics Ltd (BEL), Hindustan Aeronautics Limited (HAL) are expected to be given new defence orders worth ₹80,000 crore, sources have confirmed to CNBC-Awaaz on Friday. The decision was taken during a Defence Acquisition Council (DAC) meeting. DAC is headed by Defence Minister Rajnath Singh.
The Defence Ministry has granted in-principle approval for capital acquisition of equipment for Army, Navy, Air Force and Coast Guard. Most of the orders to be awarded under the Make in India category.
Following the development, shares of defence companies gained up to 4% in trade Friday. The Bharat Electronics Ltd (BEL) stock rose 2.18% to trade at ₹190 apiece on the NSE while Bharat Dynamics shares climbed 3.98% to trade at ₹1,730.40. Hindustan Aeronautics (HAL) also rallied 2% to trade at ₹3,083.40 per share.
On Thursday, the Defence Ministry signed a ₹1,752.13-crore contract with a Kanpur-based company for manufacturing and supply of 463 indigenously built 12.7 mm stabilised remote control guns for the Indian Navy and the Indian Coast Guard.
This acquisition will provide further boost to the vision of "Aatmanirbharta in Defence", the ministry of defence said in a statement.
"This contract will also open up a large avenue in defence manufacturing for over 125 Indian vendors and Defence PSUs for over a period of five years," it added.
The ministry signed the contract with Advanced Weapon Equipment India Limited (AWEIL), Kanpur for "manufacturing and supply of a total of 463 indigenously manufactured 12.7 mm stabilised remote control guns (SRCG) for the Indian Navy and the Indian Coast Guard at a total cost of ₹1,752.13 crore, with indigenous content (IC) of more than 85%," it said.
These guns will enhance the capability of the Navy and the Coast Guard to accurately engage small targets that pose a threat to ships in an asymmetric environment, both by day and night, the ministry's statement read.
First Published: Feb 16, 2024 1:50 PM IST
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