Defence stocks surge as govt lists 108 items for local procurement
MUMBAI: Shares of defensive equipment manufacturers rose on Tuesday after the government decided to include more than 100 items to be produced by local companies.
Shares of Hindustan Aeronautics Ltd gained 5%, Larsen & Toubro traded 0.7% higher, Bharat Electronics Ltd rose 1.3%, Astra Microwave Products 1.3%.
Shipbuilders Mishra Dhatu, Mazagon Dock, BEML and Garden Reach jumped between 1-5%.
The government list includes advanced hardware and systems such as light, medium and heavy combat armored or mini-machine guns, helicopter anti-tank missiles, anti-torpedo systems for ships, software-defined radio for warships, wall penetration radars, 10 km radar for Surveillance of battlefields, medium-power ground-based radars, thermal images and visual amplifiers for small arms, including light machine guns and assault rifles, and radars for locating mountain weapons
Long-range sliding bombs, destroyer and frigate rudders, and deep-seated mini-detectors are also on the list.
In August 2020, the ministry released a list of 101 items that it said the Indian Army, Indian Navy and Indian Air Force would receive from local suppliers.
“This will give further impetus to indigenization (the Atmanirbhar Bharat program) with the active participation of the public and private sectors to achieve the dual goals of independence and the promotion of defense exports,” the defense ministry said in a statement. (in the list published on Monday) will now be supplied by local sources in accordance with the provisions of the Defense Acquisition Procedure (DAP) 2020, “it said.
Never miss a story! Stay connected and informed with Mint.
our app now !!