L&T Stock Reaches 52-Week High After Securing DRDO Contract

23 Jun 2023 , 02:33 PM

L&T has secured a contract with DRDO for the realization of two Air Independent Propulsion (AIP) System Modules for the Kalvari Class of Submarines in the Indian Navy. 

About the Modules: These modules serve as the core components of the fuel-cell-based AIP System, which has been developed by DRDO’s Naval Materials Research Laboratory (NMRL) with L&T as the prime industry partner. The Energy Modules (EMs) within the AIP System, equipped with Fuel Cells, generate the required power and facilitate on-board hydrogen generation.

Following the announcement, L&T’s stock reached a fresh 52-week high of Rs 2,424 on the exchanges. The stock ultimately closed 0.9 % higher at Rs 2,416.

With the realization and integration of these modules into the submarines, India will join an exclusive group of nations that have independently developed fuel-cell-based submarine AIP technology. This technology is crucial for enhancing the endurance of conventional submarines, as stated in the press release.

L&T has been granted the Transfer of Technology (ToT) for the DRDO-developed AIP System. The ToT documents were handed over by Defense Minister Rajnath Singh during the Aero India 2021 event in Bangalore, in the presence of the Chief of Defence Staff and the Navy Chief.

The manufacturing, integration, and factory acceptance trials of the EMs will be conducted at L&T’s AM Naik Heavy Engineering Complex in Surat.

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