Bharat Electronics Ltd (BEL) share cost jumped as higher as 5.6 per cent to Rs 153.50 apiece in intraday on BSE. Other defence stocks such as Hindustan Aeronautics Ltd, Garden Reach Shipbuilders, Bharat Dynamics, Astra Microwave Products, BEML, Bharat Forge, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders have been also trading larger. In the prior session, the Ministry of Defence (MOD) authorized imposing restrictions on the import of 108 military weapons and systems such as next-generation corvettes, airborne early warning systems, tank engines and radars.
Hindustan Aeronautics Ltd and Garden Reach Shipbuilders & Engineers share rates surged 5 per cent, each and every, to Rs 1,069.15 and Rs 188.25, respectively. Similarly, Bharat Dynamics was up 4.5 per cent, Astra Microwave Products gained 4.4 per cent, BEML was up 1.7 per cent, Bharat Forge gained 1.3 per cent, Mishra Dhatu Nigam (MIDHANI) added 1.14 per cent, and Mazagon Dock Shipbuilders shares have been up 1.6 per cent. In comparison, S&P BSE Sensex was trading flat at 51,965, right after crossing 52,000 levels in intraday.
Defense businesses get the bulk of their order and income from one consumer, the government. “The decision that the Indian military will rely exclusively on indigenous vendors for defense equipment will help those companies like Bharat Electronics, HAL to get stability in the order book and predictability in cash flow,” Ashis Biswas, CapitalVia Global Research, told TheSpuzz Online. He added that this would aid these businesses to handle money and project development.
All the 108 things will now be procured from indigenous sources as per provisions offered in Defence Acquisition Procedure (DAP) 2020. The very first damaging list for defence imports comprising 101 things was issued last year. “The Defence industry can gainfully utilise this golden opportunity to build robust Research and Development facilities, capacities and capabilities to meet the futuristic requirements of the Armed Forces. This list also provides an excellent opportunity for ‘start-ups’ as also MSMEs which will get tremendous boost from this initiative,” MOD stated.
The ‘Second Positive Indigenisation List’ comprises complicated systems, sensors, simulator, weapons and ammunitions like Helicopters, Next Generation Corvettes, Air Borne Early Warning and Control (AEW&C) systems, Tank Engines, Medium Power Radar for Mountains, MRSAM Weapon Systems and several more such things to fulfil the specifications of Indian Armed Forces. This second list is planned to be implemented progressively with impact from December 2021 to December 2025.
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