Defence Public Sector Commitment Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) have obtained new deals from the country’s Ministry of Defense. Sources told Zee Business that BEL may upgrade the electronics package of the Indian Air Force MI-17 helicopter.
The news comes at a time when the country’s defense space is expected to grow gradually, which, along with the driving force of the central government’s “self-reliance”, increases the demand for national defense capabilities.
Given the strong long-term demand outlook, many analysts have a positive view on defense PSU stock.
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Currently, the Indian Air Force (IAF) owns more than 200 of these helicopters.
The total value of the deal is estimated at Rs 24 billion, the source said.
In addition, HAL may provide an active electronic scanning array (AESA) radar system for Tejas MK-1 aircraft, sources told Zee Business. The technology can be installed in 97 aircraft.
The cost of these Tejas MK-1 aircraft is estimated to be Rs 1.2 lakh.
The cat system is developed by PSU.
Sources said the IAF could purchase more than 100 CAT systems from HAL, with an estimated value of Rs 4,000 crore.
The system will be used with the fifth-generation fighter.
They said the systems will introduce them to the Indian Air Force in the next five years.
At the time of publishing this report, Zee’s business was not answered for the remaining time.
Share by Bel & Hal
Earlier on Wednesday, Bell shares ended 2.2% on BSE at Rs 395.4.
HAL shares fell 1.6% to Rs 4,723.5 respectively.
At current levels, Bharat Electronics shares have risen 34.6% year to date, while Hindustan Unilever shares have risen 13.1%.
