Defence-related stocks such as Reliance Defence, Walchandnagar, Larsen and Toubro, BEML and BEL gained upto 10 per cent in early trade on Tuesday after the new Defence Procurement Procedure (DPP), focusing on India-made products and fast-tracked acquisition process, was cleared by the top committee of the Defence Ministry on Monday.
Shares of Reliance Defence gained 3.94 per cent on Tuesday. Other defence-related shares such as Walchandnagar Industries, Larsen and Toubro (L&T), BEML and Bharat Electronics closed higher by 6.61 per cent, 0.76 per cent, 2.09 per cent and 1.22 per cent, respectively.
“The DAC has given the final nod to the new DPP. We expect that the new DPP will be loaded on to our website on March 28. It will be effective from April 2,” said Defence Minister Manohar Parrikar.
The new DPP also allows the DAC to take a “fast-track” route to acquire weapons, something which was limited to only the armed forces till now.
(With inputs from PTI)