The Ministry of Defence signed a Rs 62,370 crore deal with Hindustan Aeronautics Ltd (HAL) for the procurement of 97 Light Combat Aircraft on Thursday.
In a statement, the Defence Ministry said that the delivery of these aircrafts would commence during 2027-28 and be completed over a period of six years.
The Defence Ministry elaborated that HAL will deliver 97 MK1A combat jets, which include 68 fighters and 29 twin-seaters. The aircraft will have an indigenous content of over 64 per cent, and 67 additional items will be incorporated, over and above the previous LCA Mk1A contract signed in January 2021.
Public-Private partnerships in HAL- Defence Ministry deal
The defence order of such a large scale demands collaboration between private companies and public sector undertakings. The Defence Ministry said that the project is being supported by a vendor base of nearly 105 Indian companies directly engaged in the manufacture of detailed components.
The production is expected to generate close to 11,750 direct and indirect jobs per year for the duration of six years, giving a major boost to the domestic aerospace ecosystem.
HAL share price
Hindustan Aeronautics’ stock closed at Rs 4,776 on Thursday, up 1.10 per cent.