Defense stocks increase:Shares of major defence equipment manufacturers including Mazagon Dock, Cochin Shipyard, Hindustan Aeronautics Limited, Garden Reach Shipbuilders and others rose substantially after the Defence Acquisition Council (DAC) approved key investments to procure advanced indigenous defence equipment.
Shares of Mazagon Dock Shipbuilders Limited rose as much as 6 per cent on Wednesday to hit the day’s high of Rs 4,764.65 along with Cochin Shipyard, which also registered a 5 per cent rise.
At 11:01 am, HAL was trading nearly 2 percent higher, while Garden Reach Shipbuilders shares were trading 3.5 percent higher.
On Tuesday, under the chairmanship of Union Defence Minister Rajnath Singh, the DAC approved the capital procurement proposals amounting to Rs 1,44,716 crore under which the government will procure future-ready combat vehicles, air defence fire control radars, Dornier-228 aircraft and next-generation fast and offshore patrol vessels.
“For modernisation of the Indian Army’s tank fleet, the proposal for procurement of Future Ready Combat Vehicle (FRCV) has been approved. The FRCV will be a futuristic main battle tank with superior mobility, off-road capability, multi-layered protections, precision and lethal fire and real-time situational awareness,” the official announcement said.
According to the announcement, 99 per cent of the approved proposals are from indigenous suppliers, in line with the government’s focus on self-reliance in the Buy (India) and Buy (Indian Indigenous Design, Development and Manufacturing) categories.
The DAC has also given the green light to the acquisition of air defence fire control radars. These radars are designed to detect and track air targets while providing accurate firing solutions, enhancing the Army’s air defence capabilities. In addition, the council has approved the acquisition of advanced repair equipment (tracked), which will allow on-site repairs during mechanised operations, thanks to their mobility across the country.
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