The Defence Ministry signed contracts with Larsen & Toubro (L&T), Tata Power, and Bharat Earth Movers (BEML) worth 2,580 crores to obtain Pinaka rocket launchers for six army regiments.
On Tuesday, the day after the contract was signed, the shares of Tata Power, Bharat Earth Movers (BEML), and Larsen & Toubro (L&T) gained on the Bombay Stock Exchange (BSE).
Larsen & Toubro (L&T) hit a high of 965.95 rupees in the opening deals. At 9:32 AM, Larsen & Toubro (L&T) was trading over 1.7 percent higher at 961.65 rupees. Tata Power was trading over 2 percent higher at 60.05 rupees, while BEML was up 4.5 percent, at 699.95 rupees, against Monday`s close of 669.2 rupees. The benchmark S&P BSE Sensex was trading nearly a percent higher at 38,974.68 levels.
According to the statement of the Acquisition Wing, Ministry of Defence, the ministry signed a contract on 31st August with Tata Power Company Limited (TPCL), Larsen & Toubro (L&T), and Bharat Earth Movers (BEML).
114 Launchers with automated gun aiming and positioning system (AGAPS) and 45 command posts shall be procured from Tata Power Company Limited (TPCL) and Larsen & Toubro (L&T). 330 vehicles shall be procured from Bharat Earth Movers (BEML) under the six Pinaka Regiments.
The engineering conglomerate Larsen & Toubro (L&T) announced on Monday the completion of the sale of its electrical and automation (E&A) business to Schneider Electric, after which the shares of Larsen & Toubro (L&T) were in focus. The deal, which was announced in May 2018, valued at 14,000 crores, and was one of the biggest divestment so far in value for Larsen & Toubro (L&T).
The deal was signed to give a big boost to the Make in India initiative.
The project was approved by the Union Finance Minister Nirmala Sitharaman and the Defence Minister Rajnath Singh. Defence Research and Development Organisation (DRDO) indigenously designed the Pinaka multiple launch rocket system (MLRS). It is produced by Larsen & Toubro (L&T), Tata Power, and Bharat Earth Movers (BEML) in a flagship project showcasing the Public-Private Partnership (PPP).
The Pinaka regiments will be deployed along India`s border with China and Pakistan to further enhance the operational preparedness of India`s armed forces.
