- 24 Nov 2023
- ICICI Securities
Three major defence projects worth Rs 1.4 lakh crore likely to receive govt's approval soon
HAL - 4680 Change: 78.00 (1.69 %)News: As per the news reports, India is set to give preliminary approval to three mega indigenous projects which together will be worth around Rs 1.4 lakh crore. The three projects include manufacturing of another aircraft carrier (estimated cost of Rs 40000 crore), 97 more Tejas MK1A fighters (estimated cost of Rs 55000 crore) and 156 Prachand light combat helicopters (estimated cost of Rs 45000 crore). As per the report, defence acquisitions council is likely to take up the AoN (acceptance of necessity) for the three projects at a meeting slated on Nov 30.
Views: Though these projects have been under discussions from armed forces with the government, we believe that the process of awarding contracts will start after the AoN. Hindustan Aeronautics (HAL) will be receiving the contracts for 97 Tejas MK1A and 156 LCH (totalling ~Rs 1 lakh crore) and Cochin Shipyard is likely to receive the contract for the next aircraft carrier also. Bharat Electronics (BEL) along with Data Patterns and Astra Microwave would also be the beneficiaries in supplying electronic systems, sub-systems.
Impact: Positive