HAL Signed Two Contracts of ₹8,073.17 Crore with Ministry of Defence

On March 13, 2024, Hindustan Aeronautics Limited (HAL) signed two contracts for a combined value of ₹8,073.17 crore with the Ministry of Defence (MoD) after approval from the Cabinet Committee on Security (CCS).

Insight into Contracts

The contract has been signed for the acquisition of 34 Advanced Light Helicopters (ALH) Dhruv Mk III along with operational role equipment for the Indian Army (25 ALHs) and Indian Coast Guard (09 ALHs) under Buy (Indian-IDDM – Indigenously Designed, Developed and Manufactured) category marking a significant move towards indigenisation in defence manufacturing.

The Indian Army variant, the ALH Dhruv Mk III UT (Utility), is intended for use in areas such as search and rescue, troop transportation, internal cargo, reconnaissance, and casualty evacuation. The ALH Dhruv Mk III has proven its effectiveness in high-altitude areas like Ladakh and Siachen Glacier.

The ALH Mk III MR (Maritime Role), the ICG version, is designed for Maritime Surveillance and Interdiction, Search and Rescue, Rappelling Operations and also for Cargo & Personnel Transportation, Pollution Response using external cargo-carrying capability and Medical Casualty Evacuation. It has proved its mettle even in adverse atmospheric conditions over sea and land.

The project is likely to generate employment of an estimated 190 Lakh Man-Hours during its duration. Under this project, over 200 MSMEs and 70 local vendors will be involved in supplying equipment in the indigenisation process, which is likely to have a positive impact on employment generation in this sector.

On March 14, 2024, the share price of Hindustan Aeronautics Ltd opened at ₹3,045.05 and touched the day high of ₹3,135.80 at 11:14 AM. The stock has delivered a return of ~123.09% in the past year.

About Hindustan Aeronautics Limited

Hindustan Aeronautics Ltd (HAL) is involved in the manufacturing of aircraft and helicopters, as well as the repair and maintenance of aircraft and helicopters. HAL plays a strategic role in the country’s defence program, being the only Indian company that specialises in aircraft manufacturing and provides maintenance and related services. It is highly dependent on contracts from the Ministry of Defence.

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