HAL soars over 5%

HAL is buzzing loud today; opening over 5% higher at Rs.4925, the intraday high point currently and is now trading at Rs.4832 levels. Its 52-week high is at Rs.5675.

The company announced today morning that the Cabinet Committee on Security (CCS) approved the proposal for procurement of 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of the Indian Air Force (IAF).

The order value is placed at over Rs.26,000 crore, inclusive of all taxes and duties.

The delivery of these aero-engines would start after one year and complete over a period of eight years.

The engines will have indigenous content over 54%, enhanced due to indigenisation of some key components of aero-engines.

These would be manufactured at Koraput division of HAL.

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.