The shares of Indian military enterprises soared substantially in early trade on December 4, with gains of up to 5%, after the military Acquisition Council (DAC) approved five major acquisition requests totaling more than Rs 21,772 crore. This decision, aimed to boost India’s defense capabilities, attracted market interest, with equities such as Mazagon Dock Shipbuilders and Garden Reach Shipbuilders rising more than 5%, while Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics increased 2-3%.
The Electronic Warfare Suite (EWS), next-generation radar warning receivers, water jet quick attack and interceptor vessels, and advanced light helicopters for coastal surveillance are a few examples.
The council also authorized the purchase of 120 Fast Interceptor Craft (FIC-1), which can be used for a variety of tasks, including as escorting aircraft carriers, destroyers, frigates, and submarines for coastal defense. Additionally, the DAC authorized the purchase of six Advanced Light Helicopters (ALH) M helicopters for the Indian Coast Guard in order to improve monitoring and security along the coast.
Navy to Acquire 31 Fast Attack Crafts for Coastal Operations
The Indian Navy will acquire 31 new water jet fast attack craft (NWJFACs) thanks to approval from the Defence Acquisition Council (DAC), which is led by Defence Minister Rajnath Singh. The Ministry of Defence stated that the NWJFACs are intended to carry out patrol, surveillance, low-intensity marine operations, and search and rescue missions near the shore. Anti-piracy missions are also successfully conducted by the vessels, particularly in and around Indian island territory.
This approval for the defense procurement is a positive change following a period of stagnation in domestic ordering, according to Amit Dixit, defense analyst at ICICI Securities. The firm that Dixit believes has the greatest potential to gain from the Electronic Warfare Suite (EWS) for Su-30MK-I and from almost all of the proposals is Bharat Electronics.
