HAL share price rallied over 3% on Wednesday after the government approved the project to buy 97 Tejas aircrafts for ₹62,000 crore. HAL share price gained as much as 3.56% to ₹4,611.60 apiece on the BSE.
The Cabinet Committee on Security cleared the acquisition of 97 LCA Mark 1A fighter jets for the Indian Air Force (IAF) at a cost of ₹62,000 crore, ANI reported, quoting defence sources. The approval, granted in a high-level meeting, paves the way for HAL to scale up production of the indigenous aircraft.
This marks the second major order for LCA Mark 1A fighters, following the earlier contract for 83 aircraft valued at around ₹48,000 crore. The new Tejas jets will replace the ageing MiG-21 fleet, which is being phased out by the government in the coming weeks, the report added.
The LCA Mark 1A is equipped with advanced avionics and radars compared with the initial batch of 40 LCAs already supplied to the IAF. The indigenous content in the new aircraft is expected to exceed 65%.
The move aligns with Prime Minister Narendra Modi’s push for self-reliance in defence manufacturing.
HAL has secured a pipeline of projects to build a range of indigenous fighter jets, helicopters, and their engines. In addition, the company is expected to bag contracts for more than 200 LCA Mark 2 aircraft and a similar number of fifth-generation Advanced Medium Combat Aircraft (AMCA).
At 9:20 AM, HAL share price was trading 1.70% higher at ₹apiece on the BSE.
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