Defence public sector undertakings Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) are learned to have secured fresh deals from the country’s defence forces. BEL is likely to upgrade the electronic suites in the Indian Air Force’s Mi-17 helicopters, sources told Zee Business.
The news comes at a time when the country’s defence space is anticipated to see gradual growth amid rising demand for defence capabilities in tandem with the central government’s ‘Atmanirbhar’ (self-reliant) push.
Many analysts hold a positive outlook on defence PSU stocks in view of strong long-term demand prospects.
Currently, the Indian Air Force (IAF) has more than 200 units of these helicopters in service.
The total value of the deal is estimated at Rs 2,400 crore, according to the sources.
Separately, HAL is likely to supply active electronically scanned array (AESA) radar systems for Tejas MK-1 aircraft, sources told Zee Business. This technology may be fitted in 97 units of the aircraft.
The cost of these Tejas MK-1 aircraft is estimated at Rs 1.2 lakh crore.
The CAT system is developed by the PSU.
The IAF is likely to purchase more than 100 CAT systems from HAL in a deal estimated to be worth Rs 4,000 crore, according to the sources.
The systems are set to be used with the 5th generation fighter jets.
These systems will be inducted into the Indian Air Force within the next five years, they said.
Queries sent to both PSUs by Zee Business remainder unanswered at the time of publishing this report.
BEL & HAL shares
Earlier on Wednesday, BEL shares ended 2.2 per cent lower at Rs 395.4 apiece on BSE.
The HAL stock declined 1.6 per cent to finish at Rs 4,723.5 apiece.
At the current levels, Bharat Electronics shares have risen 34.6 per cent so far this year, while the Hindustan Unilever stock gained 13.1 per cent.
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