Defence Ministry approves capital acquisition of military hardware worth INR 70,500 crore; HAL bags big orders

To boost the Atmanirbhar Bharat policy in the defence sector of the nation, Defence Acquisition Council and Defence Minister Rajnath Singh have approved proposals to procure INR 70,000 crore worth of different weapon systems for the Indian defence forces. The deal includes the purchase of 60 UH Marine choppers from Hindustan Aeronautics Limited (HAL), worth INR 32,000 crore.

Out of the total proposals, Indian Navy proposals constitute more than INR 56,000 crore, which largely includes indigenous BrahMos missiles, Shakti Electronic Warfare (EW) systems, Utility Helicopters-Maritime etc.

This apart, 60 ‘Made in India’ Utility Helicopters Marine & BrahMos supersonic cruise missiles for Indian Navy, 307 ATAGS howitzers for Indian Army, and 9 ALH Dhruv choppers for Indian Coast Guard will be bought in accordance with the approved proposals.

The council also accorded AoN for the procurement of Advance Light Helicopters (ALH) MK-III from Hindustan Aeronautics Limited (HAL) for the Indian Coast Guard. The Helicopter will be able to carry a suite of surveillance sensors which will enhance the surveillance capabilities. It will also give full night capability and Instrument Flight Rules (IFR) capability for the operations of the Indian Coast Guard, said the Ministry in its official press release.

The month has been going favourably with HAL. Interestingly, on March 10, the ministry inked a Rs 667-crore contract with HAL for 6 Domier-228 aircraft for the Indian Air Force, causing the HAL stock to surge. Earlier this month, the Union Cabinet approved the purchase of 70 HTT-40 primary trainer aircraft from HAL for Rs 6,828.36 crore.

HAL chairman and managing director CB Ananthakrishnan recently revealed that it has an order book worth Rs 84,000 crore and an order pipeline worth another Rs 50,000 crore.

HAL stock opened nearly 4% higher on Friday’s early trade at Rs 2,830.