Bharat Electronics Ltd (BEL) is prone to win a deal to the tune of Rs 2,000-2,200 crore from the Indian Air Power (IAF), sources advised Zee Enterprise. The IAF is ready to induct the MK-2 low-level mild weight radars to its fleet, they mentioned.
Bharat Electronics shares ended greater by Rs 8.7, or 3.0 per cent, at Rs 293.7 apiece on BSE amid a broad-based surge throughout Dalal Road.
On the time of publishing this report, Zee Enterprise’s queries despatched to BEL remained unanswered.
MK-2 are lightweight and, therefore, easy-to-transport radars.
This shall be an upgraded model of comparable radars already produced by BEL, in accordance with sources.
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The Indian Air Power has already issued a request for info (RFI) for the deal.
The issuance of RFI is an preliminary step within the defence procurement course of. It includes the organisations below the Ministry of Defence gathering the required info from potential distributors to grasp the prospects of potential tasks.
Over the following 12-14 months, the deal will doubtless be sanctioned by the Defence Acquisition Council (DAC), the nationwide physique answerable for the procurement of defence tools, adopted by the Cupboard Committee on Safety’s approval, mentioned the sources.
Do you have to enter the defence area on Dalal Road now?
Many analysts have optimistic views on the nation’s defence area citing long-term demand visibility.
“Defence is usually a large contributing sector for the economic system… Most of defence-related firms have strong order books and powerful money flows,” Vijay Chopra, MD and CEO, Enoch Ventures, advised Zee Enterprise.
Within the coming decade, the defence sector goes to be a significant contributor to the nation’s GDP, mentioned Chopra.
Which shares to spend money on from a long-term perspective?
Chopra is bullish on BEL, Hindustan Aeronautics Ltd (HAL), Cochin Shipyard, Bharat Earth Movers Ltd (BEML) and Mazagon Dock for the long run.
The demand will proceed to develop for your complete defence sector in the long term,” he added.
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