Bharat Electronics, Bharat Dynamics, Solar Industries, Garden Reach Shipbuilders & Bharat Forge are likely to be the key beneficiaries of the Defence Ministry approving capital proposals worth Rs 84,328 crore.

The key beneficiaries were highlighted by ICICI Securities analyst Amit Dixit, in an interaction with CNBC-TV18 on Friday.

The Defence Ministry on Thursday approved the procurement of a number of military platforms and weapons including light tanks, anti-ship missiles and long range guided bombs at a cost of Rs 84,328 crore to boost combat capabilities of the armed forces.

The procurement proposals were cleared by the Defence Acquisition Council (DAC) headed by Defence Minister Rajnath Singh.

The defence ministry said the DAC accorded approval for 24 capital acquisition proposals which include six for Indian Army, six for Indian Air Force, 10 for Indian Navy and two for Indian Coast Guard.

The ministry said 21 proposals worth Rs 82,127 crore will be procured from indigenous sources.

The Acceptance of Necessity (AoN) for the procurement came amid a spike in tensions between India and China after troops from the two sides were engaged in a clash along the Line of Actual Control (LAC) at Yangtse in the Tawang sector of Arunachal Pradesh.

Sources said the light tanks and mounted gun system are set to be deployed in high-altitude forward areas including along the LAC.

Also Read: What triggered the India-China clash at Tawang in Arunachal? Officials explain

It said the proposals include procurement of futuristic infantry combat vehicles, light tanks, naval anti-ship missiles, multi-purpose vessels, new range of missile systems, long range guided bombs and next generation offshore patrol vessels.

It said the procurement for the Army included futuristic infantry combat vehicles, light tanks and mounted gun system, adding they will provide a quantum jump to the force’s operational preparedness.

"Proposals approved also include procurement of ballistic helmets, with enhanced protection level, for our soldiers," the ministry said in a statement. "Approvals for procurement of naval anti-ship missiles, multi-purpose vessels and high endurance autonomous vehicles will further enhance maritime strength giving a boost to the Indian Navy’s capabilities," it said.

The ministry said the Indian Air Force will be further strengthened with enhanced lethal capabilities by induction of new range of missile systems, long range guided bombs, range augmentation kit for conventional bombs and advanced surveillance systems.

"The procurement of next generation offshore patrol vessels for the Indian Coast Guard will enhance surveillance capability in the coastal areas to new heights," it said.

India has been focusing on enhancing the combat capabilities of the armed forces deployed along the LAC following the eastern Ladakh row.

In an interaction with CNBC-TV18, Jayant Patil of L&T Defence said that 10 out of the 24 approved proposals would be beneficial for the company. The orders will pertain to FICV, Light Tanks, Mounted Guns & Vessels for the coast guard. Patil also said that revenue from these orders would start accruing in the next 3-4 years.

Also Read: Def Min extends pro rata pension benefits to JCOs, ORs with 10 years of service & who join PSUs

(Edited by : Anushka Sharma)

First Published:Dec 22, 2022 9:27 PM IST