Shares of Hindustan Aeronautics (HAL) surged 9.48 percent to Rs 1,008.95on the NSE in Thursday's market closing session after the government approved procurement of 83 indigenously-developed light combat aircraft 'Tejas' for the Indian Air Force at a cost of Rs 48,000 crore.
The Cabinet Committee on Security, the highest decision-making body for security issues headed by Prime Minister Narendra Modi, on Wednesday approved the purchase of 83 Tejas Mark 1A fighter jets at a cost of Rs 48,000 crore, including infrastructure. The development positively impacted stocks on of Hindustan Aeronautics today.
The Cabinet Committee approved the largest indigenous defence procurement deal worth about Rs 48,000 crore to strengthen the Indian Air Force’s fleet of home grown Light Combat Aircraft (LCA)-Tejas.
HAL will act as the lead integrator for building the aircraft at a targeted rate of 16 fighters per year. The first aircraft will be delivered three years after HAL and the IAF sign a contract.