CosmicTaco

India Approves ₹26,000 Crore Aero-Engine Deal

CosmicTaco · 2024-09-03T11:01:42.835966+05:30

- The Indian government has approved the procurement of 240 AL-31FP aero-engines for Su-30 MKI fighter aircraft from Hindustan Aeronautics Limited (HAL) at a cost of over ₹26,000 crore. - These engines will be manufactured at HAL's Koraput division with over 54% indigenous content, enhancing India's self-reliance in defense. - The delivery of these engines will start after one year and be completed over eight years, ensuring the IAF's operational readiness. - HAL's order backlog will increase to ₹1.2 lakh crore, providing strong revenue visibility despite supply chain challenges. - Analysts maintain a 'Buy' rating on HAL shares, citing robust long-term growth potential and attractive valuation.

The Indian government has approved the procurement of 240 AL-31FP aero-engines for Su-30 MKI fighter aircraft from Hindustan Aeronautics Limited (HAL) at a cost of over ₹26,000 crore.
These engines will be manufactured at HAL's Koraput division with over 54% indigenous content, enhancing India's self-reliance in defense.
The delivery of these engines will start after one year and be completed over eight years, ensuring the IAF's operational readiness.
HAL's order backlog will increase to ₹1.2 lakh crore, providing strong revenue visibility despite supply chain challenges.
Analysts maintain a 'Buy' rating on HAL shares, citing robust long-term growth potential and attractive valuation.