Reliance Industries share price: Three reasons why the stock is in spotlight on Monday, August 17

Shares of Reliance Industries (RIL) are expected to be on investors' radar on Monday, August 17, following a series of developments during the weekend and after Friday's closing session.

Reliance, Rolls-Royce join hands to build India's fighter jet engine

Reliance Industries and Rolls-Royce on Friday said they intend to jointly develop a sovereign combat engine for the Advanced Medium Combat Aircraft (AMCA) programme, marking a bid by India's largest private-sector company and Britain's storied aero-engine maker to build indigenous fighter-jet propulsion capability in the country.

The two companies, in a joint statement, said they would explore forming a dedicated Aerospace Gas Turbine Complex in India, envisioned as a centre of excellence for power and propulsion technology, covering design, development, manufacturing, testing, production and through-life support of combat engines.

The proposed partnership would combine Britain's storied aero-engine maker's technology and expertise with Reliance's technology, manufacturing and execution capabilities to develop the AMCA engine in India.

The announcement frames the tie-up as advancing Indian Prime Minister Narendra Modi's push for the country's defence sector to produce an indigenous engine to power its fighter jet programme, part of the broader "Atmanirbhar Bharat", or self-reliant India, initiative.

"India's strategic autonomy requires sovereign capability in critical technologies," Anant Ambani, executive director of Reliance Industries, said in the statement.

He said the partnership would combine Rolls-Royce's propulsion expertise with Reliance's "technology, manufacturing, scale and execution capabilities" to build an aero-engine ecosystem in India that could become "self-reliant and, over time, globally competitive".

Rolls-Royce chief executive officer Tufan Erginbilgic said the alliance brings together "our century-long heritage in advanced engineering and proven engine expertise" with Reliance's standing in Indian industry, calling it "a major milestone towards building a robust, self-reliant aerospace ecosystem in the country".

Govt sets LPG production targets; RIL gets largest quota

RIL shares are likely to remain in focus after the Centre assigned its Jamnagar refinery the highest LPG production target under the new emergency domestic supply framework, a move aimed at strengthening India's energy security.

The government has for the first time fixed maximum cooking gas LPG production targets for individual public- and private-sector refineries and upstream companies, as it seeks to build a domestic supply buffer after the West Asia conflict exposed the country's vulnerability to disruptions in imported cooking gas.

The Petroleum and Natural Gas Ministry, in an order issued on August 13, has specified maximum LPG production levels for 21 refineries and upstream companies, with combined production potential set at 63,810 tonnes a day -- more than double the domestic LPG output in the fiscal year ended March 31, 2026 and about 70% of the country's daily consumption.

The production limits will kick in whenever there is a supply constraint.

However, it must be noted that this is strategically positive rather than an immediate earnings positive for Reliance Industries (RIL).

The reason is that Reliance has been assigned the largest LPG production target among all refiners, reinforcing its role in India's energy security.

Windfall gains tax lowered on petrol, diesel, ATF exports

RIL stock is likely to be in focus after the Centre reduced the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF).

The move is positive because RIL operates the world's largest refining complex at Jamnagar and exports significant quantities of these fuels. Lower export duties mean the company gets to keep a larger share of its export revenue, which can support refining margins and improve profitability from its fuel exports.

The government has cut windfall gains tax on exports of petrol, diesel and ATF for the fortnight beginning August 15.

The rate of special additional excise duty (SAED) on the export of diesel is now ₹24 per litre, down from ₹25.5 per litre. SAED on exports of ATF is set at ₹19.5/litre, as against ₹22/litre earlier.

The duty on petrol exports has been cut to nil effective August 15, from ₹3.5 per litre levied on August 3.

The finance ministry, in a notification, said the duty hikes will be effective from August 15.

Amid escalating tensions in West Asia, the government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight. Beginning May 16, the levy was imposed on petrol exports.