HAL, Bharat Dynamics, Mazagon Dock, Cochin Shipyard shares rise as DAC clears proposals worth ₹21,772 crore

Stocks in the defence sector rose on Wednesday, December 4, after the Defence Acquisition Council (DAC), under Defence Minister Rajnath Singh's chairmanship, approved five capital acquisition proposals worth more than ₹21,772 crore.

Shares of Cochin Shipyard, Mazagon Dock, and Garden Reach Shipbuilders & Engineers also climbed 1.45%, 2.4%, and 5%, respectively.

BEML shares were trading at ₹4,316.5 a unit, up 1.47%, on the NSE, taking its market capitalisation to ₹17,976.06 crore.

DAC gave an Acceptance of Necessity (AoN) to procure 31 New Water Jet Fast Attack Crafts for the Indian Navy. These vessels are used in low-intensity maritime operations, patrol, surveillance, and search and rescue (SAR) operations near the coast. They will also play a key role in anti-piracy missions close to Island territories.

DAC also granted AoN the right to procure 120 Fast Interceptor Craft (FIC-1), which are used for escorting high-value units like aircraft carriers, destroyers, Frigates, and Submarines for coastal defence.

"AoN for procurement of Electronic Warfare Suite (EWS) comprising External Airborne Self Protection Jammer pods, Next Generation Radar Warning Receiver and associated equipment for Su-30 MKI Aircraft was accorded by DAC. This system will enhance the operational capabilities of SU-30 MKI and protect it from enemy radars and related weapon system while carrying out a mission against enemy targets protected by Air Defence system," the Defence ministry said in a statement.

Moreover, AoN for procurement was also granted for six Advanced Light Helicopters M (MR) for the Indian Coast Guard (ICG) to boost the coastal security and surveillance in the coastal areas. The council also approved an overhaul of T-72 and T-90 tanks, BMP and engines of Sukhoi fighter aircraft.