Hindustan Aeronautics shares surge on securing order worth Rs 26,000 crore

HAL shares: Shares of Hindustan Aeronautics rose as much as 5 per cent to hit an intraday high of Rs 4,925 after the company informed stock exchanges that the Cabinet Committee on Security has approved procurement of 240 aeroengines for Indian Air Force's (IAF) Su-30 MKI aircraft from Hindustan Aeronautics Limited (HAL) worth Rs 26,000 crore.

"Cabinet Committee on Security, on September 02, 2024, 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 delivery of these aero-engines would start after one year and complete over a period of eight years," Ministry of Defence said in a press release.

"The engines will have indigenous content over 54 per cent, 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," Ministry of Defence said.

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, Defence Ministry added.

As of 12:24 pm, Hindustan Aeronautics shares traded 3.31 per cent higher at Rs 4,841.35, outperforming the Sensex which was trading on a flat note.