Make in India boost! Defence Ministrys nod to Rs 13,165-cr platforms, hardware procurement deal - These defence shares in action today
The procurement deal includes 25 indigenously-developed ALH Mark-III helicopters for the Indian Army to boost its combat capabilities
By Mansi Dave
Defence shares are in action today. Why there is an action in Defence shares? How will Make in India get a boost from defence? Senior Producer Mansi Dave shares details about action in defence stocks.
Dave said the defence under Make in India is getting a boost. The Defence Ministry approved the procurement of military platforms and hardware worth Rs 13,165 crore, including 25 indigenously-developed ALH Mark-III helicopters, for the Indian Army to boost its combat capabilities. The Defence Acquisition Council (DAC) has already approved this procurement.
She further added that around Rs 3,850 crore will be invested to purchase 25 indigenously-developed ALH Mark-III helicopters, while a batch of rocket ammunition will cost Rs 4,962 crore.
Similarly, the government will invest Rs 11,486 crore for procurement of military platforms and hardware from domestic companies, Dave added.
Dave asserted that these procurement deals are for the Indian Army, Indian Navy, and Indian Air Force. This acquisition will boost Make in India because over 87 per cent of deal will be done through domestic companies. To manufacture military hardwares, domestic companies are being involved now.
Rocket production, ammunition production and helicopter production are being included in this acquisition deal. Similarly, keep an eye on all the Defence-related stocks, she added.
She also mentioned that the research about which she was talking is the changes of ammunition and munition. Ammunition is the bullet and munition is the device or weapon.
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On Thursday, the majority of the defence-related stocks were buzzing and each of them was up over 3 per cent. All state-owned companies, including HAL, Bharat Electronics, BHEL and BEML, were trading positively, while in private space, Taneja Aerospace grew by 3 per cent today.
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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