The share price of Hindustan Aeronautics (HAL) surged over 10 per cent on Thursday, a day after the announcement of Rs 48,000 crore deal to acquire 83 Tejas aircraft for the Indian Air Force from the company.
The shares were trading at 1,015.00, up by 93.40 points or 10.13 per cent at 2:25 pm at the National Stock exchange (NSE). While at the Bombay Stock Exchange (BSE) it was at 1,013.85 up by 92.95 points or 10.09 per cent. However, the intraday high was of Rs 1,047.
The approval was given in a Cabinet Committee on Security (CCS) meeting which was chaired by Prime Minister Narendra Modi and Defence Minister Rajnath Singh.
Prime Minister Modi tweeted on Wednesday that the Cabinet's decision will improve the capabilities of Armed forces, boost the indigenous defence industry and will strengthen the movement to create an Atmanirbhar Bharat.
Today’s Cabinet decision will improve the capabilities of our armed forces, boost the indigenous defence industry and strengthen the movement to create an Aatmanirbhar Bharat. https://t.co/lZ6w3XbyTT— Narendra Modi (@narendramodi) January 13, 2021
Meanwhile, Rajnath Singh said that this deal will be a game-changer for self-reliance in the Indian defence manufacturing.
In a series of tweets, he said "The LCA-Tejas is going to be the backbone of the IAF fighter fleet in years to come. LCA-Tejas incorporates a large number of new technologies many of which were never attempted in India. The indigenous content of LCA-Tejas is 50% in Mk1A variant which will be enhanced to 60%."
The LCA-Tejas programme would act as a catalyst for transforming the indian aerospace manufacturing ecosystem into a vibrant Atmanirbhar-self-sustaining ecosystem. I thank the Prime Minister Shri @narendramodi for this historic decision taken by the CCS today.— Rajnath Singh (@rajnathsingh) January 13, 2021
The decision taken today will considerably expand the current LCA ecosystem and help in creating new job opportunities. HAL follows a system integrator model in LCA Mk1A program and acts as an umbrella organisation, fostering manufacturing & design capabilities in pvt. industry.— Rajnath Singh (@rajnathsingh) January 13, 2021
The LCA-Tejas is going to be the backbone of the IAF fighter fleet in years to come. LCA-Tejas incorporates a large number of new technologies many of which were never attempted in India. The indigenous content of LCA-Tejas is 50% in Mk1A variant which will be enhanced to 60%.— Rajnath Singh (@rajnathsingh) January 13, 2021
The Defence Minister also informed that the company has already set-up second line manufacturing facilities at its Nasik and Bengaluru Divisions.
The HAL has already set-up second line manufacturing facilities at its Nasik and Bengaluru Divisions. Equipped with the augmented infrastructure the HAL will steer LCA-Mk1A production for timely deliveries to the IAF.— Rajnath Singh (@rajnathsingh) January 13, 2021
He further added that the decision will considerably expand the current LCA ecosystem and help in creating new job opportunities.
The request for proposal for the procurement of 83 Tejas light combat aircraft was submitted in 2017 by the Indian Air Force to HAL.
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