- 04 Dec 2024
- ICICI Securities
DEFENCE ACQUISITION COUNCIL ACCORDED AON FOR FIVE CAPITAL ACQUISITION PROPOSALS WORTH OVER RS 21,772 CRORE
News: The Defence Acquisition Council accorded Acceptance of Necessity (AON) for five capital acquisition proposals worth over Rs 21,772 crore. This included the procurement of 31 Water Jet Fast Attack Crafts, 120 Fast Interceptor Craft, Electronic Warfare Suite, Next Generation Radar Warning Receiver and 6 Advanced Light Helicopters. It has also accorded approval for the overhaul of T-72 & T-90 tanks, BMP- and engines of Sukhoi fighter aircraft which will enhance the service life of these assets.
Views: As the approvals have now been permitted, the tenders for all the platforms/systems would be floated in the coming period. Companies such as Garden Reach Shipbuilders & Engineers, L&T and Goa Shipyard, Cochin Shipyard and Mazagon Dockyard would be the key beneficiaries for 31 Water Jet Fast Attack Crafts and the fast interceptors crafts. The contract of Electronic Warfare Suite would have the key beneficiaries from BEL, Data Patterns while the tenders for Advanced light helicopters would see participation from HAL and the electronics and missiles for the helicopters would be supplied to it from BEL and BDL . The overhaul tenders would have HAL, BEL and state owned companies as beneficiaries. Mishra Dhatu Nigam Limited would be the key beneficiary for suppliying super alloys and titanium alloys towards the tender.
Impact: Positive