Major fighter jet deal, trade dominate Francois Hollande's India trip

Trade issues

Under the proposed Rafale deal, the first 18 aircraft are to be made in France with the remainder to be produced under licence by Hindustan Aeronautics Limited (HAL), the state-run Indian aerospace behemoth.

Another important project that will dominate the trip is a contract for Areva to construct a nuclear power station in the western coastal state of Maharashtra. It has run into stiff opposition from environmentalists.

The project, signed in December 2010, is for two European pressurised reactors (EPR) at Jaitapur 400 kilometres south of Mumbai, with an option for four more reactors.

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