Mumbai: Shares of Larsen & Toubro and Tata Power surged more than 4 percent today after the Defence Ministry shortlisted a consortium of Tata Power-Strategic Electronics Division (SED) and L&T for the battlefield management project.
L&T surged 4.81 percent to Rs 1,761 and was the biggest gainer among the 30-Sensex scrips.
Shares of Tata Power rose by 4.16 percent to Rs 86.25 on the BSE. The stock was the second biggest gainer after L&T among Sensex blue-chips.
The ministry has shortlisted a consortium of Tata Power- Strategic Electronics Division (SED) and Larsen & Toubro for the battlefield management project, the order value of which in the production phase may be as much as Rs 50,000 crore.
As per the requirement of the procurement procedure, both the selected parties will -- after finalisation of the system specification -- be tasked with development of "prototype systems" for which purpose 80 percent cost will be funded by the government, L&T had said yesterday.
The expected amount involved in the development phase will be clear only after the system specifications have been finalised but is expected to be around Rs 800 crore, it had said.
The total order value in the production phase could be between Rs 40,000 crore and Rs 50,000 crore, it added.
