Defence Stocks in Focus: DAC Approves Proposals to Acquire Weapons Systems Worth ₹79,000 Crore

The Defence Acquisition Council (DAC) has approved proposals worth ₹79,000 crore, focusing on enhancing India's defence capabilities. This includes the overhaul of T90 tanks and a mid-life upgrade of Mi-17 helicopters, as reported by PIB. 

Key Approvals by Defence Acquisition Council 

The DAC's recent meeting resulted in the approval of significant defence proposals. The council has sanctioned the overhaul of T90 tanks and the mid-life upgrade of Mi-17 helicopters. These upgrades are crucial for maintaining the operational efficiency of India's defence forces. 

Additional Defence Acquisitions 

In addition to the tank and helicopter upgrades, the DAC has approved proposals for acquiring loitering munitions and MRSAM missiles for the Indian Navy and Air Force. These acquisitions aim to bolster India's strategic defence capabilities. 

Changes in RFP and New Missile Acquisitions 

The government has also approved changes in the Request for Proposal (RFP) for acquiring refuellers and Airborne Warning and Control System (AWACS). Furthermore, the proposal to acquire Astra Mark-II air-to-air missiles has been given the green light. 

Read More: Defence Stocks in Focus: BEL, BDL and HAL Rise Ahead of Key DAC Meeting! 

Impact on Defence Stocks 

The approval of these proposals is likely to impact various defence sector stocks. Companies like MIDHANI, BEML, BDL, BEL, Bharat Forge, Mazagon Dock Shipbuilders, GRSE, Mtar Technologies, Paras Defence and Space Technologies and HAL, which are involved in defence manufacturing, may see changes in their stock performance. For instance, MIDHANI's stock opened at ₹323 and now trading at ₹356.2, showing an 11.8% increase. 

Conclusion 

The Defence Acquisition Council's approval of ₹79,000 crore worth of proposals highlights a significant investment in India's defence sector. The overhaul of T90 tanks, Mi-17 helicopters, and the acquisition of advanced missiles are expected to enhance the country's defence capabilities. 

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