The shares of Mazgaon Dock Shipbuilders surged more than 10.3 per cent on the National Stock Exchange while trading at the day high level of Rs 4,510.00 per share.
The stock zoomed on the NSE (National Stock Exchange) after the Cabinet Committee on Security (CCS), which is led by Prime Minister Narendra Modi, approved two defence contracts that are essential to the nation's security needs.
The stock hit the opening bell at Rs 4,154.95 per share on the national stock exchange (NSE); the stock touched a day-high level of Rs 4,510.00 per share, zooming 10.3 per cent on the Indian bourses.
Drones purchase agreement
The agreement to purchase 31 Predator drones from the USA has been approved by CCS. As per the agreement, India will receive 31 High Altitude Long Endurance (HALE) Unmanned Aerial Vehicles (UAVs).
Out of these, the Navy will receive 15 SeaGuardian drones, while the Indian Air Force and Army will receive 8 each of the land versions.
The MQ-9B drone is an offshoot of the MQ-9 'Reaper' drone, which in July 2022 took out al-Qaeda chief Ayman al-Zawahiri in the centre of Kabul by launching a modified Hellfire missile.
Cost of the deal
At a total cost of about USD 3.1 billion (Rs 26,000 crore), the MQ-9B 'hunter killer' drones are being purchased from US defence giant General Atomics through the foreign military sales channel.
The American proposal was only valid until October 31st, so the agreement needed to be approved before then. It will now only be signed in the coming days.
Two nuclear-powered submarines
The report also stated that the construction of two nuclear-powered attack submarines at the Ship Building Centre in Vishakhapatnam, which is estimated to cost around Rs 45,000 crore, is the second significant defence deal that has been approved by the CCS.
When Prime Minister Modi made his historic state visit here in June 2023, he revealed the proposed massive drone deal.
