Defence Ministry inks pact worth ₹2,269 Crore with Bharat Electronics; stock gains ~2%

14 Feb 2024 , 10:23 AM

On Tuesday, the defence ministry inked a ₹2,269 Crore contract with state-owned Bharat Electronics Limited (BEL) to purchase 11 Shakti combat systems and related equipment. The electronic warfare gear would be placed onboard the Indian Navy's frontline vessels, authorities said.

The Shakti systems are capable of properly collecting electronic signals and applying countermeasures in a dense electromagnetic environment, they claim.

“The Ministry of Defence entered into a contract with Bharat Electronics Limited (BEL) in Hyderabad on February 13. The agreement involves the acquisition of 11 Shakti Electronic Warfare Systems, along with related equipment and accessories, for the Indian Navy. This procurement falls under the Buy (Indian-IDDM) category and is valued at a total cost of ₹2,269.54 Crore,” stated Ministry of Defence in a statement.

The initiative is expected to create employment for 250,000 man-days over a span of four years, involving the collaboration of over 155 industry partners, including Micro, Small, and Medium Enterprises (MSMEs). This aligns with the vision of promoting self-reliance in India, known as 'Atmanirbhar Bharat,' as stated by the ministry.

The Shakti EW system is entirely indigenously planned, developed, and manufactured.

The main focus of Bharat Electronics lies in producing cutting-edge electronic goods designed for both ground and aerospace purposes. BEL stands as one of the sixteen Public Sector Undertakings (PSUs) under the Ministry of Defence in India and holds the prestigious Navratna status, as conferred by the Government of India. As of January 1, 2024, the total value of the company's order book amounted to ₹76,217 Crore.

At around 10.22 AM, Bharat Electronics was trading 2.01% higher at ₹180.15, against the previous close of ₹176.60 on NSE.

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