Indian Cabinet Approves Major Defence and Semiconductor Projects
The Cabinet Committee on Security has approved a substantial procurement deal for Hindustan Aeronautics Limited (HAL), authorizing the purchase of 240 AL-31FP aero-engines for the Indian Air Force’s Su-30 MKI aircraft. Valued at ₹26,000 crore, this agreement will see engine deliveries commence in one year and continue over the following eight years. HAL’s Koraput division will manufacture these engines, which will feature over 54% indigenous content thanks to the local production of key components. This move is set to bolster the operational capabilities of the Su-30 MKI fleet, enhancing the Indian Air Force’s strategic edge and readiness.
In a separate development, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has also approved Kaynes Semicon Pvt Ltd.’s plan to establish a semiconductor manufacturing facility in Sanand, Gujarat. This new unit, with an investment of ₹3,300 crore, will produce 60 lakh chips per day, supporting various sectors including automotive, electric vehicles, consumer electronics, and telecom.
Following the Cabinet’s approval, Hindustan Aeronautics Ltd (HAL) saw its share price open over 5% higher on Tuesday following the approval by the Union Cabinet Committee for the procurement of 240 aero-engines for Su-30 MKI aircraft, valued at Rs 26,000 crore. HAL shares surged as much as 5.09% to Rs 4,925.00 apiece at the open on the BSE.
