Defence stocks buzz: Defence stocks gained momentum on Monday, after the Indian Army issued a tender to buy guns, missiles, drones and many other systems from domestic manufacturers for meeting critical requirements under emergency procurement procedures.
On Monday, Bharat Dynamics was amongst the top defence shares. Shares of Bharat Dynamics Ltd surged to hit a record high of ₹978 apiece on the BSE in Monday’s early trading session by rallying over 2% intraday. The stock has been in an upward movement since the past few sessions and has jumped more than 12% in the last five trading sessions.
Other top stocks buzzing are Mazgaon Dock Ship, Cochin Shipyard, Paras Defence and Astra Micro. Defence stocks have been in the spotlight recently with the government’s focus on ‘Aatmanirbhar’ Bharat.
Earlier on Sunday, the Indian Army tweeted , “In keeping with its commitment to fight the future wars with Indigenous Solutions, #IndianArmy invites the Indian Defence Industry to offer critical defence equipment for Emergency Procurement.”
In keeping with its commitment to fight the future wars with Indigenous Solutions, #IndianArmy invites Indian Defence Industry to offer critical defence equipment for Emergency Procurement. #IndianArmy #InStrideWithTheFuture pic.twitter.com/eAHYEM3cp7
— ADG PI – INDIAN ARMY (@adgpi) September 18, 2022
In a series of tweets the ADG-PI Indian Army shared links for getting details on Requests for Proposals (RFPs) which are being fielded for guns, missiles, drones, counter-drone, loiter munition, communication and optical systems, specialist vehicles and more.
“We have invited the Indian defence industry to offer critical defence equipment for emergency procurement. Proposals are being fielded for guns, missiles, drones, counter-drone, loiter munition, communication and optical systems, specialist Vehicles, engineering equipment and alternate energy resources,” the Indian Army said.
The process will be based on compressed timelines, wherein the procurement window will be open to Indian Industry for six months and the industry would be expected to deliver equipment within one year of signing the contract. Procurement cases will be based on Open Tender Enquiry, the force said.
Under emergency procurement powers, the armed forces can buy equipment worth Rs 300 crores under capital procurement cases and Rs 500 crores under revenue procurement cases.