BEL surges on bagging its biggest export order worth US$ 93.15 million from Airbus
5paisa Research Team
23rd November 2021 - 01:09 pm
This order falls under the Airbus offset commitments given to the Government of India.
Bharat Electronics Ltd, a Navratna Defence PSU, announced today that it has secured a contract from Airbus Defence and Space, a European aircraft manufacturer for manufacturing and supply of Radar Warning Receiver (RWR) and Missile Approach Warning System (MAWS).
"This export order, worth US$ 93.15 million, is the biggest received till date by BEL," the company said in a statement. This order is a part of the Airbus offset commitments for the Government of India’s C295 aircraft programme.
Brief Background
With an intent to modernize the transport fleet of IAF, on September 24 2021, the central government had signed a contract with Airbus Defence and Space, for the provision of 56 C-295MW transport aircraft for the Indian Air Force (IAF). As per the agreement, Airbus shall deliver the first 16 aircraft in ‘fly-away’ condition, while the remaining 40 aircraft would be manufactured and assembled by the Tata Advanced Systems (TASL) in India.
Along with this, the government had also signed an offset contract with the aircraft manufacturer for discharging its offset obligations via the direct purchase of eligible products and services from Indian Offset Partners.
About the Airbus C295 aircraft
The Airbus C295 is a new-generation tactical airlifter in the light and medium segment. It is known for its ability to conduct multi-role operations worldwide under all weather conditions. Owing to these features, it is used extensively by military and civil operators all over the world.
Reacting to this development, at 12.50, the share price of Bharat Electronics Ltd was trading at Rs 208.3, which was an increase of 2.61% from the previous day’s closing price of Rs 203 on BSE.
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