State-run aerospace giant Hindustan Aeronautics Limited (HAL) has inked a memorandum of understanding with a Russian company sanctioned by the US to jointly manufacture passenger aircraft.
The MoU with Russia’s Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) for the SJ-100 comes at a time India-US relations are experiencing significant stress over New Delhi’s energy and defence ties with Russia.
The Donald Trump administration has slapped India with penal tariffs for buying Russian oil. India has been flagging Western “double standard” by highlighting that some countries were continuing to import from Moscow but targeting New Delhi’s decision to buy Russian oil. President Vladimir Putin is scheduled to visit India in December.
“This will also be the first instance wherein a complete passenger aircraft will be produced in India. This collaboration between HAL and UAC is the result of mutual trust between the organisations,” HAL said.
The MoU, which was signed in Moscow on Monday by Prabhat Ranjan from HAL and Oleg Bogomolov from UAC, marks India’s first foray into full-scale civilian aircraft manufacturing in decades.
“This will also be the first instance wherein a complete passenger aircraft will be produced in India. The last such project was HAL’s production of AVRO HS-748, which started in 1961 and ended in 1988,” the HAL statement said
Under the pact, HAL will have the right to manufacture SJ-100 twin-engine, narrow-body aircraft for domestic customers.
“As on date, more than 200 aircraft (SJ-100) have been produced and are being operated by more than 16 commercial airline operators. SJ-100 will be the game changer for short-haul connectivity under the UDAN Scheme in India. Under this arrangement, HAL will have the rights to manufacture SJ-100 aircraft for domestic customers,” HAL said.
“It is estimated that over the next 10 years, the Indian aviation sector will require over 200 jets in this category for regional connectivity and an additional 350 aircraft for the Indian Ocean region to serve nearby international tourist destinations,” it added.
The manufacturing of the SJ-100 aircraft marks the beginning of a new chapter in the history of the Indian aviation industry, the Bengaluru-based PSU said.
“It’s a step towards fulfilling the dream of ‘Aatmanirbhar Bharat’ in the civil aviation sector. Manufacturing will also strengthen the private sector and create direct and indirect jobs in the aviation industry.”
Recently, HAL faced flak for delaying the execution of the ₹48,000-crore contract for 83 jets, which were ordered in February 2021 by the Indian Air Force.