Hindustan Aeronautics (HAL) jumped 9.74% to Rs 1010.60 after the Union Cabinet approved procurement of 83 Light Combat Aircrafts (LCA) 'Tejas' from the company for the Indian Air Force (IAF).
The Union Cabinet on 13 January 2020 approved procurement of 73 LCA Tejas Mk-1A fighter aircrafts and 10 LCA Tejas Mk-1 Trainer aircrafts at the cost of Rs 45,696 crore along with design and development of infrastructure sanctions worth Rs 1,202 crore.
Light Combat Aircraft Mk-1A variant is an indigenously designed, developed and manufactured modern 4+ generation fighter aircraft.
It is the first "Buy (Indian-indigenously designed, developed and manufactured)" category procurement of combat aircrafts with an indigenous content of 50% which will progressively reach 60% by the end of the programme.
About 500 Indian companies including MSMEs in the design and manufacturing sectors will be working with HAL in this procurement.
HAL is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. As of 30 September 2020, the Government held 75.15% stake in the company.
HAL's consolidated net profit fell 1% to Rs 615.19 crore on 40.7% jump in net sales to Rs 4,853.60 crore in Q2 September 2020 over Q2 September 2019.
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