Monday, April 11, 2011
Tata Power has bagged an over Rs. 1,000 crore-contract from the Indian Air Force
In one of the biggest private sector engagement in the defence sector, Tata Power has bagged an over Rs. 1,000 crore-contract from the Indian Air Force for modernisation of its 30 airfields.
Tata Power has received the order to modernise the Airfield Infrastructure of Indian Air Force from the Ministry of Defence.
Sources said the contract is worth over Rs. 1,000 crore and would be implemented in a two-phases over a period of around four years. It would cover about 30 air fields.
This would probably be the largest defence contract awarded through a global tender process, another source said.
The contract is quite important and encouraging in terms of private sector participation in the defence sector and would create a "precedence", the source added.
"The programme, known as Modernisation of Airfield Infrastructure – Phase I (MAFI-I), is of strategic importance and aims to improve capability of the Airfields to handle the modern combat air fleet being inducted by IAF," Tata Power said in a statement on Monday.
Tata Power Strategic Electronics Division (SED) Chief Executive Officer Rahul Chaudhry said the contract "won against a Global Defence tender of MoD, is a watershed moment, not only for us, but also for increasing private sector participation in Indian defence sector".
The company has been working closely with the Ministry of Defence and Defence Research and Development Organisation (DRDO) to provide state-of-the-art solutions to Indian Armed Forces for the past four decades, he added.
Tata Power's Managing Director Anil Sardana noted that bagging this order signifies recognition of Tata Power SED's capability to support the Indian defence establishment.
"Tata Power SED is committed to delivering world-class Airfields to the Indian Air Force and the division will continue to remain a long-term reliable partner of the Indian Armed Forces and other related establishments of MoD," he said.
Shares of the Tata Power closed marginally higher at Rs. 1317.30 on the Bombay Stock Exchange.