HAL bags mega contract to procure 83 Tejas LCA
Hindustan Aeronautics Limited (HAL) share price was up over 2 percent intraday on February 3 as the government is set to formally sign the Rs 48,000-crore deal to procure 83 Tejas light combat aircraft from state-run aerospace major for the Indian Air Force, officials said, according to a PTI report.
The mega contract will be signed at the Aero India air show in Bengaluru in presence of Defence Minister Rajnath Singh, top brass of the IAF and senior officials of the Hindustan Aeronautics Limited (HAL), they said.
The Cabinet Committee on Security (CCS) chaired by Prime Minister Narendra Modi on January 13 approved the deal for procurement of the 73 Tejas Mk-1A variant and 10 LCA Tejas Mk-1 trainer aircraft from the HAL to boost Indian Air Force's combat prowess.
"The delivery of the Tejas aircraft to the IAF will begin from March 2024 and around 16 aircraft will be rolled out annually till completion of the total supply of 83 jets," said Hindustan Aeronautics CMD R Madhavan. The total cost of Rs 48,000 crore includes design and development cost of Rs 2,500 crore to be given to Aeronautical Development Agency (ADA) and around Rs 2,250 crore set aside for variations in foreign currency exchange rate.