HAL Shares Climb 2% As New Tejas Aircraft Production Line Set To Launch Today

HAL Share Price: Ahead of the inauguration of Hindustan Aeronautics' third production line for Tejas Mark 1A (Mk1A) at the company’s Nashik facility, HAL shares rose over 2 per cent to hit an intra-day high of Rs 4,977.60 apiece.

The yearly production capacity of the light combat aircraft Tejas Mark 1A (Mk1A) will increase from 16 to 24 jets.

On Friday, October 27, Union Defense Minister Rajnath Singh will inaugurate the third production line for the indigenous fighter HAL's Nashik production facility and also witness the maiden flight of the first jet rolled out from there.

Over the decades, HAL’s aircraft production division in Nashik has produced hundreds of Soviet and Russian-origin fighters, such as the MiG-21 and the Sukhoi Su-30MKI.

The new production line dedicated for the indigenous aircraft could position India on the export possibility for Tejas aircraft.

Also Read: IMF Chief Warns Against Tariff Hikes, Urges Open Trade For Growth

“After decades of licensed production of foreign-designed platforms, the facility will now also manufacture indigenous ones,” the company executives said, citing media reports. 

HAL missed its original February 2024 deadline to start deliveries of the Tejas Mk1A, primarily due to delays in the arrival of F404-IN20 engines from American engine maker GE Aerospace.

GE handed over the fourth F404 engine on September 30, and HAL expects that with the supply situation stabilising, deliveries of the first Tejas Mk1A jets to the Indian Air Force (IAF) can be expedited, subject to the successful completion of ongoing weapons-firing trials. HAL has assured that 12 Mk1A aircraft will be delivered by the end of 2025–26.

Tejas is considered as India's homegrown light combat aircraft (LCA). It is a single-engine, delta wing, multirole light fighter designed by the Aeronautical Development Agency (ADA) and produced by Hindustan Aeronautics Limited for the Indian Air Force and Indian Navy.

As of 11:13 am today, the share price of HAL was Rs 4,943 apiece, higher by 1.60 per cent.