Rafale: Dassault scrip jumps on news of direct purchase by India

Paris, April 10: Dassault Aviation share gained 4.2 per cent on the Paris Bourse on Friday to touch euros 1,190 after news that India may go in for buying 63 Rafale aircraft directly.

Several media outlets reported that India would negotiate a deal to buy the aircraft in a government-to-government deal, Dassault is the manufacturer of the medium-multi role combat aircraft. Some reports quoted official sources as saying that the earlier selection process for the aircraft would be cancelled.

A memorandum of understanding is likely to be signed during Prime Minister Narendra Modi's official visit to France which ends on Saturday, the reports said. The number being mentioned is half the number of combat planes that the Indian Air Force had earlier tendered for. The rest of the aircraft are expected to be manufactured in India by Hindustan Aeronautics Ltd (HAL) under licence from the French aviation company.

Dassault had won the tender on the basis of technical evaluation and its lowest bid, but escalation in price had come as a stumbling block later.

The Dassault scrip has been under pressure for several days falling to a low of euros 1,100 at the beginning of April from a height of euros 1,250 in the second week of March.

IANS