New Delhi, Aug. 20 -- HAL share price rallied over 3% on Wednesday after the government approved the project to buy 97 Tejas aircrafts for Rs.62,000 crore. The defence stock gained as much as 3.56% to Rs.4,611.60 apiece on the BSE.

The Cabinet Committee on Security cleared the acquisition of 97 LCA Mark 1A fighter jets for the Indian Air Force (IAF) at a cost of Rs.62,000 crore, ANI reported, quoting defence sources. The approval, granted in a high-level meeting, paves the way for Hindustan Aeronautics Ltd to scale up production of the indigenous aircraft.

This marks the second major order for LCA Mark 1A fighters, following the earlier contract for 83 aircraft valued at around Rs.48,000 crore. The new Tejas jets will replace the ageing...