Zen Tech welcomes MoD decision to outsource O&M of defence training simulators; stock ends higher

The policy will apply to all types of simulators currently in use or to be purchased by the Armed Forces in the future.

Sep 24, 2021 05:09 IST India Infoline News Service

Zen Technologies Limited shares ended higher on Friday after the company welcomes MoD decision to outsource O&M of defence training simulators.

Ministry of Defence (MoD) has promulgated the framework for increased utilisation of simulators by the Indian Army, Indian Airforce, Indian Navy, and the Indian Coast Guard to transform to simulation-based training across all military domains to achieve cost-effective, safe and smart training. The framework emphasises indigenous design and development as well as outsourcing simulator operation and maintenance to Indian Companies.

The policy will apply to all types of simulators currently in use or to be purchased by the Armed Forces in the future.

The stock  at Rs204.80 up by Rs9.75 or 5% from its previous closing of Rs195.05 on the BSE. The scrip opened at Rs200.80 and has touched a high and low of Rs204.80 and Rs199 respectively. 

Mr Ashok Atluri, Chairman, Managing Director, and CFO, commented on the government initiative, saying, “This is unquestionably the right strategic decision taken by the Indian Government. The transformation from training on actual equipment to simulation-based training across all military domains will lower training costs by saving on ammunition and logistics, extend the life of operational equipment, improve the operational readiness of the armed forces, and give a huge boost to the morale of the troops.”

He further added “The framework will provide a significant boost to Indian companies involved in the design, development, and maintenance of defence training simulators. Furthermore, the idea of outsourcing the operation and maintenance of simulators to Indian companies is a huge plus. While outsourcing military training to companies is common in countries like the USA, this is a bold move by the Government of India and the Armed Forces. With guaranteed uptime of training equipment, the military can train more reliably. Overall, simulation training and outsourcing could save thousands of crores - a very smart and prudent move by the Indian Government.”

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