Hindustan Aeronautics Ltd (HAL) has announced a revised Memorandum of Understanding (MoU) with the Aeronautical Development Agency (ADA), bolstering their collaboration on the LCA AF Mk-2 program.

What Happened: The updated MoU is related to the completion of the LCA AF Mk-2 development, leading to operation clearance during the Full Scale Engineering Development (FSED) Phase-3 of the LCA AF Mk-2 program. The program is valued at ₹2,970.00 crore.

“The company has signed an amendment to the MoU with the Aeronautical Development Agency (ADA) w.r.t. completion of LCA AF Mk-2 development,” the company said in an exchange filing.

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This revised MoU comes at a time when defence stocks like HAL have been under pressure. As reported earlier, shares of defence stocks such as HAL, Bharat Dynamics, Cochin Shipyard, and Mazagon Dock Shipbuilders were on the defence in a recent session.

Experts pointed out that investors might be booking profit in the sector after its stellar run in the market. Despite this, most of the stocks were trading in the red, even with reports of them winning further orders and strong brokerage comments. This revised MoU could potentially boost investor confidence in HAL and the defence sector at large.

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