HAL shares surge 2% as company secures ₹2,890 cr Defence Ministry order

Hindustan Aeronautics Limited (HAL) shares surged nearly 2% following the announcement of a significant contract with the Defence Ministry. Under the deal inked on March 15, 2024, HAL will undertake the mid-life upgrade (MLU) of 25 Dornier Aircraft for the Indian Navy, totaling a substantial Rs. 2,890 crore.

This upgrade entails the incorporation of cutting-edge Avionics Systems and Primary Role sensors, a move poised to substantially augment the operational capabilities of the Indian Navy’s Dornier fleet. With enhanced functionalities, these aircraft will adeptly carry out primary roles including Maritime and Coastal Surveillance, Electronic Intelligence, and the development of Maritime Domain Awareness.

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Additionally, the upgraded Dorniers will be equipped to perform secondary roles such as Search and Rescue operations, Medical/Casualty Evacuation, and Communication Link missions, thereby bolstering the Indian Navy’s overall operational readiness.

“The MLU for Domier Aircraft includes an upgrade to incorporate state-of-the art Avionics Systems and Primary Role sensors. The upgrade would significantly enhance the operational capability of the Domier aircraft of the Indian Navy to perform Primary Roles of Maritime Surveillance, Coastal Surveillance, Electronic Intelligence and development of Maritime Domain Awareness. In addition, this upgrade will also enable Indian Navy Domiers to carry out Secondary Roles of Search and Rescue, Medical/Casualty Evacuation and Communication Link,” HAL said in a statement on Friday.

Shares of HAL experienced a notable uptick, trading 1.14% higher at ₹3,134.40 as of 10:20 am.