- 24 Feb 2025
- ICICIdirect Research
DEFENCE MINISTER RAJNATH SINGH ORDERED THE SETTING UP OF THE FIVE-MEMBER COMMITTEE UNDER DEFENCE SECRETARY RAJESH KUMAR SINGH
HAL - 5040 Change: 38.90 (0.78 %)News: Defence minister Rajnath Singh ordered the setting up of the five-member committee under defence secretary Rajesh Kumar Singh in early February and set a one-month deadline for it to submit a report on what needs to be done to speed up the production and induction of the indigenous fighter jets (Tejas MK1A). The panel also includes the chief of Indian Air Force (IAF) and Hindustan Aeronautics (HAL). The committee is ready to submit its report and the recommendations will be implemented on priority. The ministry is looking at an enhanced role for the private sector for timely delivery of the capability to the air force
View: As GE is also expected to start delivering engines from March/April, we believe that manufacturing of Tejas MK1A fighter jets is expected to accelerate further with this development. HAL management also said that 11 jets will be delivered to IAF by Mar-26 and 24 jets annually thereafter. With the government focus on increasing private sector participation in manufacturing of indigenous fighter jets in future, we believe that companies like Astra Microwave, Data Patterns, Azad Engineering would also benefit considerably
Impact: Positive