Defence stocks, including Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL), saw gains after the Cabinet Committee on Security (CCS) approved deals worth ₹80,000 crore for 31 Predator drones and two nuclear submarines. This decision significantly enhances India’s military capabilities.
The CCS has approved the procurement of 31 Predator drones from the USA, consisting of 15 SeaGuardian drones for the Navy and eight each of the land version, SkyGuardian, for the Army and Indian Air Force. This purchase underscores India’s commitment to modernising its defence capabilities.
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In addition to the drones, the CCS also greenlit the manufacturing of two nuclear-powered attack submarines at Vishakhapatnam’s Ship Building Centre, estimated to cost around ₹45,000 crore. This initiative aims to bolster the country’s naval strength and operational capabilities in the Indian Ocean Region.
The Indian Navy’s acquisition of nuclear-backed submarines is expected to enhance its operational effectiveness significantly. Private sector companies, including Larsen and Toubro (L&T), will play a major role in the construction of these advanced submarines, reflecting a growing public-private partnership in defence.
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The procurement of MQ-9B “hunter-killer” drones, totaling around $3.1 billion, comes under the foreign military sales route from US defence giant General Atomics. The urgency of the deal is emphasised, as it needed to be finalised before October 31 to meet the American proposal’s validity.
At 9:47 am, shares of HAL, BDL, Bharat Electronics, and other defence-related companies were trading up to 3% higher. These long-endurance drones will enhance surveillance along the Line of Actual Control with China and can perform various roles, including maritime surveillance and anti-submarine warfare.
