Blitz Bureau
NEW DELHI: The shares of Hindustan Aeronautics Limited (HAL) surged as much as 5 per cent to hit an intraday high of Rs 4,925 per share on September 3.
The rise in HAL share price came after the Cabinet Committee on Security, on September 2, approved the proposal for procurement of 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of the Indian Air Force (IAF) under Buy (Indian) category from Hindustan Aeronautics Limited (HAL) at a cost of over Rs 26,000 crore inclusive of all taxes and duties.
The engines will have indigenous content over 54 per cent, enhanced due to indigenisation of some key components of aero-engines, HAL said in a statement.
These aero-engines will be manufactured at the Koraput division of HAL and the delivery of these aero-engines would start after one year and complete over a period of eight years, the company said.
HAL highlighted that Su-30 MKI is one of the most powerful and strategically-significant fleet of IAF.
The supply of these aero-engines by HAL would meet the fleet sustenance requirement of IAF to continue their unhindered operations and strengthen the defence preparedness of the country, it added.
Hindustan Aeronautics Limited, established in 1940, and headquartered in Bangalore, is India’s largest aerospace and defence company, as well as one of the oldest and largest globally.
HAL’s operations encompass the manufacturing of aircraft, helicopters, and their components, with notable products including the Dhruv advanced light helicopter, the Tejas light combat aircraft, and the Hindustan Ambassador car.
The company is also involved in the design and development of new products and upgrades, as well as the repair and overhaul of aircraft and helicopters. Additionally, HAL manufactures crucial satellite structures.
With facilities located in various Indian cities, including Kanpur, Nasik, Koraput, Korwa, Lucknow, Kasaragod, and Hyderabad, HAL operates under the purview of the Indian Ministry of Defence.
The market capitalisation of HAL is Rs 3,22,055.29 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE100 category.
