- The shares of defence and aerospace major Hindustan Aeronautics Limited (HAL) are likely to be in focus among market investors on Wednesday.
- Contract negotiations between India and France for the ₹50,000-crore deal involving 26 Rafale Marine fighter jets are set to commence on May 30.
- A high-level French delegation will meet the Indian Defence Ministry officials to discuss the Indian Navy’s acquisition of these aircraft, according to a report by news agency ANI.
HAL stock in focus as India, France begin talks for ₹50,000-crore Rafale Marine fighter jet deal.
HAL Shares React to Upcoming Negotiations
HAL stock closed Tuesday’s trading session in the red, down 2.53 per cent to ₹5,012 per share. Investors are keenly watching the developments as the contract negotiations between India and France for the ₹50,000-crore deal involving 26 Rafale Marine fighter jets are set to commence on May 30.
High-Level Delegations to Meet
A high-level French delegation, including representatives from their defence ministry and industry, such as Dassault Aviation and Thales, will meet Indian Defence Ministry officials. The discussions will focus on the Indian Navy’s acquisition of these aircraft. Defence industry officials have indicated that the aircraft will be operated from both of the Navy’s aircraft carriers—the Russian-origin INS Vikramaditya and the indigenous INS Vikrant.
Strategic Importance of the Deal
The negotiations are crucial as they are expected to bolster India’s naval capabilities significantly. The French delegation’s visit underscores the importance of this deal, which is being conducted as a government-to-government contract. Indian officials are aiming for rigorous discussions to ensure the best terms for the acquisition.
Timeline and Expectations
Government sources indicate that efforts will be made to conclude the negotiations and sign the agreement by the end of the financial year. The navy chief has instructed his team to expedite the project’s timeline to ensure the early finalisation and induction of the aircraft into the fleet. France had responded to India’s tender for 26 Rafale Marine jets for the aircraft carriers INS Vikrant and INS Vikramaditya in December, and the response to India’s Letter of Acceptance was submitted in New Delhi.
Conclusion
The upcoming negotiations between India and France for the ₹50,000-crore Rafale Marine fighter jet deal are a significant development for HAL and the Indian defence sector. Investors will be closely monitoring the outcomes, which could have substantial implications for HAL’s stock performance and India’s naval capabilities. The successful conclusion of this deal would mark a major milestone in India’s defence acquisition strategy.
