HAL Wins Rs 62,700 Crore Defence Contract from Ministry of Defence, Shares Bounce
Introduction
Hindustan Aeronautics Limited (HAL) witnessed its share increase 2.71% to Rs 4,289.30 as it won two huge contracts of Rs 62,700 crore from the Ministry of Defence. The contract comprises the delivery of 156 Light Combat Helicopters (LCH), Prachand, to the Indian Army and Indian Air Force, substantially enhancing India’s defense power.
Key Highlights of the Deal
- Total Contract Value: Rs 62,700 crore
- Recipient: Ministry of Defence, India
- Number of Helicopters Ordered: 156 LCH Prachand
Indian Air Force (IAF): 66 helicopters
Indian Army: 90 helicopters - Delivery Timeline: Begins in the third year and goes on for five years
- Stock Surge: HAL shares rose by 2.71% following the news
Strategic Significance of the LCH Prachand
Light Combat Helicopter (LCH) is India’s first indigenously designed and developed combat helicopter with the capability to fly above 5,000 meters’ altitude. Specially designed for war at high altitudes, LCH is one of the primary weapons used for border defense and conducting combat at extreme temperatures.
Top LCH Prachand Features
- Fight at High Altitude: Flies over 5,000 meters
- Indigenous Content: To achieve over 65%
- Industry Influence: Involves 250+ indigenous companies (majority MSMEs)
- Employment Generation: Direct and indirect employment opportunities of over 8,500
This contract serves to enhance India’s ‘Atmanirbhar Bharat’ program through enhanced indigenous defence production and enhancing self-reliance in defence aviation.
Further Defence Procurement – Flight Refueling Aircraft (FRA)
Defence Ministry has entered into an agreement with Metrea Management for the wet lease of one Flight Refueling Aircraft (FRA). The FRA (KC-135 Aircraft) will be supplied in six months and improve air-to-air refueling training for IAF and Indian Navy pilots. It is the inaugural wet-leased FRA for the IAF, adding to the operational capability.
Frequently Asked Questions (FAQs)
- What is the overall value of HAL’s agreement with Ministry of Defence?
Supply of 156 Light Combat Helicopters (LCH) to Indian Air Force and Indian Army under contract value is Rs 62,700 crore. - How many LCH helicopters will Indian Air Force and Indian Army receive?
HAL will supply 66 LCH helicopters to Indian Air Force and 90 to Indian Army. - When will HAL begin delivering the LCH helicopters?
The delivery will begin in the third year and continue for the subsequent five years. - Why is the LCH Prachand special?
The LCH is India’s first indigenously designed and developed combat helicopter, which can fly at altitudes of over 5,000 meters with high indigenous content. - How would this agreement affect India’s defense industry?
This agreement boosts India’s air combat capacity, enhances local defence manufacturing, and increases self-reliance in the drive for the ‘Atmanirbhar Bharat’ agenda. - How many Indian companies are engaged with the LCH project?
More than 250 Indian companies, mostly MSMEs, are engaged with the production and supply chain of the LCH. - What are the job opportunities generated as a result of this project?
The deal will create more than 8,500 direct and indirect job opportunities in India. - What is the contribution of Metrea Management towards this deal?
Metrea Management has signed a deal with the Defence Ministry to wet lease one Flight Refuelling Aircraft (FRA) for IAF and Navy pilot air-to-air refuelling training. - What is the aircraft leased for refueling training?
The KC-135 Aircraft will be leased by Metrea Management to conduct refueling training. - What are the advantages of the wet-leasing FRA to the Indian Air Force?
The FRA will improve the IAF’s operational capability by adding important air-to-air refueling training, enhancing mission readiness.
Future Outlook
This transaction is a gigantic milestone in India’s drive for defense modernization, augmenting its aerial combat and strategic strength. HAL’s ongoing pursuit of creating indigenous defense technology positions it at the center of India’s long-term military expansion.
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