New Delhi: Hindustan Aeronautics Limited (HAL) on Thursday said that the Cabinet Committee on Security (CCS) has approved the procurement of 97 Light Combat Aircraft (LCA) Mk-1A for the Indian Air Force (IAF), a deal that is expected to significantly strengthen the company’s order book and revenue pipeline.
In a regulatory filing, HAL informed the stock exchanges that the CCS, in its meeting held on August 19, cleared the proposal for the acquisition of the aircraft along with associated equipment from the company. The procurement will be executed by the Ministry of Defence.
The approval is being seen as a major boost for HAL’s long-term business outlook. Industry estimates suggest the order value could run into several billion dollars, providing strong visibility for the company’s revenues over the next decade.
This fresh approval comes on top of the earlier contract awarded in February 2021, when the Ministry of Defence signed a deal worth about Rs 48,000 crore with HAL for the supply of 83 LCA Mk-1A aircraft. With the latest sanction for 97 additional aircraft, HAL’s total confirmed order book for the LCA Mk-1A programme has now crossed 180 aircraft, substantially expanding its production pipeline.
The LCA Mk-1A, an advanced variant of India’s indigenous fighter jet, comes equipped with upgraded avionics, radar, electronic warfare systems and enhanced operational capabilities, aimed at boosting the IAF’s combat readiness.
The deal also reinforces the government’s ‘Atmanirbhar Bharat’ initiative, under which India is pushing for greater self-reliance in defence production and a reduced reliance on imports.
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