New Delhi: This time with the entire amount of Rs 8.7 Lakh crore (about US$1.2 billion) going to local manufacturers like Hindustan Aeronautics Limited (HAL) and Bharat Heavy Electricals Limited (BHEL), HAL’s share price saw a jump of over four (4) per cent as markets opened on August 12.
India is spending another Rs 8.7 lakh crore (US$1.2 billion) on defence projects after having already approved Rs 38.9 lakh crore (US$5.5 billion) for arms projects last month.
However, BHEL’s share price on the other hand remained muted showing a marginal uptake of over one (1) per cent.
The projects approved by the Defence Acquisition Council (DAC) in its meeting headed by Defence Minister Rajnath Singh include new aircraft, more firepower for the Indian Navy, as well as approvals that will speed the procurement and upgrades of unmanned aerial vehicles (UAVs).
In July, the DAC approved the proposal to procure 21 new MiG-29 aircraft along with upgrading the existing 59 already enlisted with the Air Force. It also sanctioned buying 12 new Sukhoi-20 MK I aircraft.
Pushing on the narrative of Atmanirbhar Bharat, self-reliant India, the government has put an order for 106 of the newly developed Basic Trainer Aircraft from HAL.
Initially, 70 of these jets will be inducted to meet the IAF’s training requirements once they receive the required certification. The remaining 36 will be picked up once the first 70 HTT-40 fleet — another trainer aircraft that HAL invested Rs 550 crore to develop — is operational.
