L&T Arm Bags Rs 4,500-Crore Defence Order; Shares Reverse Losses
Larsen and Toubro Ltd. (L&T) won the largest order awarded by the defence ministry to a private company as the Narendra Modi government pushes local defence manufacturing to cut reliance on imports by the world’s biggest arms buyer.
L&T’s defence arm has won the Rs 4,500-crore order to supply artillery guns to the Indian Army. As per the contract, L&T will supply 100 units of 155mm/52Cal Tracked Self Propelled (SP) Gun systems over more than 3 years, the company said in a filing to the stock exchanges.
The company had bid for the order along with its South Korean technology partner Hanwa TechWin (HTW), and emerged as the winner among four bidders based on the performance of K9-VAJRA T self-propelled Howitzer – an enhanced version of HTW’s K9 Thunder.
L&T will also provide associated engineering support package and maintenance transfer of technology to support the enhanced version of the Howitzer regiments throughout their life cycle, the stock exchange filing said.
Shares reversed losses on the BSE after the announcement.