HAL Shares In Focus: Stock Rises Amid Aero-Engine Procurement Approval

HAL shares: The delivery of these aero-engines is slated to begin after one year, with the entire order expected to be fulfilled over a span of eight years

HAL shares: On Monday, the Cabinet Committee on Security approved the procurement of 240 AL-31FP aero-engines for the IAF's Su-30 MKI aircraft.

Source : PTI

Shares of Hindustan Aeronautics Ltd (HAL) witnessed a notable surge during early trade on Tuesday. By 9:35 AM, the stock had risen by 3.04 per cent to reach Rs 4,828.70 per share on the BSE. This positive movement comes in the wake of a significant announcement from the government. At 10.10 am, HAL shares are trading at Rs 4819.65 apiece, up 2.85 per cent on the BSE, while on the NSE, shares are trading at Rs 4820.00 per peice, rising 2.82 per cent.

On Monday, the Cabinet Committee on Security (CCS) approved the procurement of 240 AL-31FP aero-engines for the Indian Air Force's Su-30 MKI aircraft. The deal, valued at over Rs 26,000 crore, includes all applicable taxes and duties and will be executed under the "Buy (Indian)" category, with Hindustan Aeronautics Limited (HAL) as the supplier.

The delivery of these aero-engines is slated to begin after one year, with the entire order expected to be fulfilled over a span of eight years. The Su-30 MKI, a frontline all-weather air-dominance fighter with multi-role capability, plays a crucial role in the Indian Air Force (IAF), capable of executing a wide range of air combat and ground attack missions.

According to a statement from the Ministry of Defence, the engines will feature over 54 per cent indigenous content, enhanced through the indigenization of key components. These engines will be manufactured at HAL’s Koraput division.

The Su-30 fighter jets are a critical asset for the Indian Air Force, with 260 units already in service. These jets, which now constitute around 50% of the IAF's fighter fleet, have been progressively upgraded with Indian systems and weapons, including the BrahMos supersonic cruise missile and the Astra air-to-air missile.

"The Su-30 MKI is one of the most powerful and strategically significant fleets of the IAF," the statement read. "The supply of these aero-engines by HAL will ensure the sustained operation of this fleet, thereby strengthening the country's defense preparedness."