HAL surges 3% on imminent deal with General Electric to co-produce jet engines

Shares of Hindustan Aeronautics Ltd (HAL) surges over 3 percent on June 7 as General Electric (GE) will reportedly be entering into a pact with HAL to co-produce jet engines in India. At 09:40 am, the defence company’s stock was quoting at Rs 3,500.90, up 2.45 percent. The stock was trading with volumes of 43,733 shares so far on June 7, as compared with its five day average of 67,071 shares, implying a fall of 35 percent.

The Biden administration has given permission, for GE to co-produce the engines in India, ahead of PM Modi's visit to the US later this month, CNBC-TV18 reported.

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GE and HAL had entered into an agreement to manufacture jet engines in 2012, but the deal could not take off as the government wanted higher levels of technology transfer, as per the report. It added that an agreement on higher levels of technology transfer has been agreed upon and no other ally has this kind of an agreement with the US.