Under the pact signed recently, Hindustan Aeronautics will convert pre-owned civil (passenger) aircraft into air refueling aircraft with cargo and transport capabilities. The move will provide India's defence ecosystem with new capabilities and cost effective solutions in the market.

As per the exchange filing, the Memorandum of Understanding will facilitate Hindustan Aeronautics and Israel Aerospace Industries's decades' long expertise in developing, manufacturing and producing leading defence platforms. The scope of MoU also covers "passenger to freighter aircraft" conversion along with MMTT conversions.

Hindustan Aeronautics (HAL) is bengaluru based defence public sector company .The company engaged in Defence Production. The Government of India held 75.15% stake in the company.

Hindustan Aeronautics‘ consolidated net profit surged 9.4 % to Rs 933.38 crore on a 8.6 % increase in net sales to Rs 5891.90 crore in Q3 2021 over Q3 2020.

Shares of Hindustan Aeronautics were trading at 0.22% higher to Rs 1555 on BSE.