Shares of six defence equipments makers rose by 2.48% to 8.05% at 13:09 IST on BSE on reports the Defence Acquisition Council approved proposals worth Rs 4444 crore on Wednesday, 17 December 2014.
Walchandnagar Industries (up 8.05%), Astra Microwave Products (up 6.69%), Bharat Electronics (up 4.69%), BEML (up 4.01%), Pipavav Defence & Offshore Engineering Company (up 3.76%) and Dynamatic Technologies (up 2.48%), edged higher.
The S&P BSE Sensex was up 384.32 points, or 1.44% at 27,094.45.
According to reports, the Defence Acquisition Council (DAC) approved proposals worth Rs 4444 crore, including the purchase of four helicopters for survey vessels at Rs 2324 crore, but deferrred a decision on a joint bid of Tata Sons and Airbus for replacing IAF's Avro transport fleet.
Besides giving its go-ahead to acquire four choppers, the DAC, under Defence Minister Manohar Parrikar, also cleared the upgradation of the mobile integrated electronic warfare system, Samyukta, at a cost of Rs 1682 crore, reports added.
The DAC also cleared a proposal relating to purchase of P-7 Heavy Drop Platform, which is used for military logistics, for Rs 402 crore, reports said.
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Another proposal of Rs 36 crore for acquiring propeller engine for offshore patrol vessel of the Coast Guard was also reportedly given a go-ahead.
The government on 26 August 2014, notified increase in foreign direct investment (FDI) limit to 49% through approval route in the defence sector.
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