Economic Explosives Limited (EEL), a subsidiary of Solar Industries India Ltd, has committed to a substantial investment of ₹12,700 crore for the establishment of a major defence and aerospace project in Nagpur.

This agreement was formalised during the World Economic Forum in Davos on January 22, 2025, and aims to enhance India's capabilities in critical defence sectors, including the production of drones, unmanned aerial vehicles (UAVs), and military transport aircraft.

The ₹12,700 crore investment will focus on expanding production capabilities for various defence products, including counter-drone systems and next-generation explosives.

The Maharashtra government will facilitate necessary permissions and provide fiscal incentives to ensure the smooth execution of this project under state policies.

This initiative is part of India's broader strategy to achieve self-reliance in defence manufacturing, reducing dependency on imports while boosting local production capabilities.

Following the announcement, shares of Solar Industries saw a notable increase, reflecting investor confidence in the company's growth prospects linked to this significant investment.

Agencies