- 01 Dec 2023
- ICICI Securities
PROPOSALS WORTH RS 2.23 LAKH CRORE APPROVED BY GOVERNMENT
News: Defence ministry has approved acquisition proposals worth Rs 2.23 lakh crore to enhance the operational capabilities of armed forces. The procurement proposals include 97 LCA mark 1A fighter jets, 156 LCH Prachand choppers, an upgrade of 84 Su-30MKI fighters. As per the news sources, these three proposals are worth Rs 1.6 lakh crore. Apart from these, AoNs have also been accorded for Towed Gun System (TGS), Medium Range anti-ship missiles (MRAShM), 155 mm Nubless projectile (for artillery guns), 2 types of anti-tank munitions and automatic target trackers & digital basaltic computers (for T-90 tanks).
Views: As the AoNs have been accorded, the procurement process will start including tendering and negotiations. Hindustan Aeronautics (HAL) will be the primary beneficiary of contracts like LCA MK1a, LCH and Su-30 MKI upgradation. Bharat Dynamics (BDL) is likely to participate in RFIs for medium range anti-ship missiles which is developed by DRDO and under trails. BDL will also benefit from additional requirements of missiles like Astra and Helina. Bharat Forge, L&T are expected to participate in RFIs for towed gun systems. Bharat forge is also expected to be the beneficiary in anti-tank munitions. Companies like Bharat Electronics (BEL), Astra Microwave, Data Patterns are expected to be involved in supplying electronic systems/sub-systems for these platforms like radars, electronic warfare etc. Midhani will be involved in supplying of superalloys, titanium alloys in some of the platforms while Premier Explosives is expected to be involved in supplying propellants for missiles and munitions.
Impact: Positive