Shares of Hindustan Aeronautics Ltd (HAL) shot up 5% on Tuesday 3 September after the Cabinet Committee on Security approved to purchase 240 AL-31 FP aero-engines from the company.

Deliveries are anticipated to start within a year, and the contract is reportedly worth Rs 26,000 crore. Complete delivery of the 240 AL-31 FP aero-engines will take around eight years to complete. 

According to reports from last month, HAL’s delivery schedule for the new Tejas Light Combat aircraft for the current fiscal year and beyond is uncertain. This was attributed to General Electric’s delays in delivering engines to HAL.

The Indian Air Force was given assurances by the military PSU that 16 LCA Mk1A aircraft will be delivered in the 2024–2025 fiscal year and 83 by the 2029 fiscal year. The initial delivery was supposed to happen on 31 March 2024, however, it has since been pushed back to November 2024 due to several delays.

The Securities of Supplies Agreement (SOSA) was signed by the US and India later in August, while Defense Minister Rajnath Singh was in the US.

At 2:24 pm, the shares of Hindustan Aeronautics were trading 0.51% higher at Rs 943.95 on NSE.

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