Hindustan Aeronautics (HAL) witnessed a significant surge in its stock price as it reached a value of Rs 3,652 per share on the BSE on Friday, April 12. The news that the Defense Ministry had decided to award a tender to Hindustan Aeronautics Limited, a public sector company, for the purchase of 97 LCA Mark 1A fighter jets made in India, precipitated this increase.
The estimated value of this deal is expected to exceed Rs 65,000 crore. Remarkably, the company’s shares have experienced a remarkable increase of over 155 percent within a year, surpassing the modest 27 percent rise in the benchmark Nifty50 index.
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The Defence Ministry has given HAL a three-month deadline to respond to the tender. This programme aims to replace the Indian Air Force’s fleet of MiG-21s, MiG-23s, and MiG-27s, which are either being phased out or will be phased out shortly, according to government officials.
The indigenous fighter aircraft programme, fully supported by the Defence Ministry and Air Headquarters, will not only promote indigenization but also provide significant business opportunities for small and medium enterprises engaged in the defence sector across the country.
Prime Minister Narendra Modi has been actively advocating for the revival of HAL, which has received orders to build various types of indigenous fighter aircraft, helicopters, and engines under his government. In fact, the Prime Minister himself took a sortie in the trainer variant of the indigenous fighter, marking the first time an Indian Prime Minister has flown in a combat aircraft.
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Air Chief Marshal VR Chaudhari, the head of the Air Force, first announced the plan to purchase 97 additional LCA Mark 1A fighter jets while traveling abroad in Spain. This decision came after a comprehensive review meeting of the indigenous fighter jet programme, involving all relevant entities, including Hindustan Aeronautics Limited.
It is worth noting that the previous order for LCA Mark 1A consisted of 83 aircraft, with the first delivery expected in the coming weeks. The LCA Mark 1A is an advanced version of the Tejas aircraft, equipped with more advanced avionics and radars compared to the initial 40 LCAs supplied to the Air Force.
