- 05 Dec 2022
- ICICIdirect Research
NAVY CONSIDERING REPEAT ORDER OF INS VIKRANT
COCHINSHIP - 1696 Change: 10.05 (0.60 %)News:
Indian Navy Chief Admiral R Hari Kumar said the Navy is examining the possibility of a repeat order for recently commissioned INS Vikrant (Indigenous Aircraft Carrier, IAC-1) as third aircraft carrier instead of INS Vishal (IAC-2). INS Vikrant is a 40,000-tonne Indigenous aircraft carrier (IAC-1) that can carry about 35 aircraft, including helicopters. As per media reports, INS Vishal, a 65000 tonne aircraft carrier that was expected to be the third aircraft carrier for Indian Navy, has been put on hold due to budget constraints
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We believe Cochin Shipyard (CSL) will be the primary contractor for this repeat order of INS Vikrant as the company has only manufactured and delivered the first IAC to the Indian Navy. The total cost of the IAC-1 project was about Rs 23000 crore. Though the repeat order of INS Vikrant will take time as it is expected only after approvals from government, we believe that the third indigenous aircraft carrier is an overall positive for CSL and other companies like HAL, BEL, BDL, Solar Industries, etc that will be involved in the supply of key components
mpact:
Positive