Hindustan Aeronautics Ltd (HAL) is flying high today, driven by the orders received; opening 5% higher at Rs.2497.95, it went on to hit a new 52-week high at Rs.2499. It continues to trade in the green at Rs.2469 levels currently.
The stock hit a high on its announcement that the Defence Acquisition Council (DAC) has approved the procurement of light combat helicopter (LCH) for the Air Force and the Army.
The DAC approved capital acquisition proposals worth Rs 2.23 lakh crore to enhance the operational capabilities of the Armed Forces. 98% to be sourced from domestic industries in major boost to ‘Aatmanirbharta’ in defence.
The approval is for –
- Procurement of Light Combat Helicopters & Light Combat Aircraft Mk 1A
- Medium Range Anti-Ship Missiles for surface platform of Indian Navy
- Towed Gun System cleared to replace Indian Field Gun
Further, to maximise indigenisation, the DAC has accorded approval for a major amendment in the Defence Acquisition Procedure (DAP) 2020. It has been decided that henceforth, in all categories of procurement cases, minimum 50% of indigenous content shall be in the form of material, components & software that are manufactured in India.
For the purpose of calculation of Indigenous content, cost of Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service shall be excluded. Also, the DAC has taken decision to further encourage start-ups/MSMEs participation in the defence ecosystem. For all procurement cases with AoN cost upto Rs 300 crore, registered MSMEs and recognised start-ups will be considered for issue of Request for Proposal (RFP) without any stipulation of financial parameters, which can further be relaxed with approval of Defence Procurement Board (DPB) for AoN cost upto Rs 500 crore on case-to-case basis.