HAL shares in focus as it secures ₹62,700cr defense deal
What's the story
Hindustan Aeronautics Limited (HAL) has bagged a mammoth ₹62,700 crore ($7.3 billion) contract from the Indian government to supply 156 light combat helicopters.
The Cabinet Committee on Security (CCS), headed by Prime Minister Narendra Modi, approved the historic deal for the Indian Army and Air Force.
The indigenous helicopters are expected to enhance the combat capabilities of India's armed forces at high altitudes.
HAL shares are likely to surge when the market opens on Tuesday, April 1.
Delivery schedule
Helicopters to be delivered over 5-year period
The Ministry of Defense has confirmed that the delivery of these helicopters will begin in 2028, and continue over a period of five years.
The Indian Army will receive 90 helicopters, while the rest will be given to the Air Force.
This strategic distribution will bolster India's military capabilities along its Himalayan borders with Pakistan and China.
Talking of HAL stock performance, the shares have gained over 35% in the past one month to trade near ₹4,180.
Production plans
HAL's 'Prachand' helicopters to be manufactured in Karnataka
HAL's 'Prachand' combat helicopters, which will be supplied under this contract, represent the company's biggest order yet.
The helicopters will be manufactured at HAL's facilities in Bengaluru and Tumkur, Karnataka.
This landmark deal not only enhances India's defense capabilities but also strengthens local manufacturing and job creation in the country.
Performance features
'Prachand' helicopters excel in high-altitude operations
India's first indigenously designed and developed combat helicopter, the Light Combat Helicopter (LCH) Prachand, can fly at altitudes over 5,000 meters.
This one-of-a-kind capability makes it perfect for deployment in high-altitude areas like the Siachen glacier and Eastern Ladakh.
The Prachand comes with advanced weaponry including air-to-ground and air-to-air missiles, strong armor protection, stealth features, and night attack capability.
Economic impact
Over 8,500 jobs to be created through helicopter procurement
The procurement of these helicopters will generate over 8,500 direct and indirect jobs.
The defense ministry said this combat helicopter has a large number of components designed and manufactured in India, with an overall indigenous content planned to exceed 65% during execution.
This initiative has over 250 domestic companies, mostly MSMEs (Micro, Small & Medium Enterprises), contributing significantly to India's 'Make in India' journey.