India and Russia sign deal on joint aircraft production
An Indian state-owned company has signed an agreement with Russia for the joint production of passenger aircraft.
Source: Bloomberg; Indian public sector aerospace and defence company Hindustan Aeronautics Limited (HAL)
Details: India's HAL has signed a deal with Russia's United Aircraft Corp (UAC) to manufacture SJ-100 civil commuter aircraft.
This was reported on X (Twitter) by HAL. However, the tweet did not mention whether the pact includes technology transfer to India or any financial investment.
Quote from HAL: "SJ-100 is a twin-engine, narrow-body aircraft. As on date, more than 200 aircraft 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. 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."
Details: The agreement was signed ahead of Russian leader Vladimir Putin's planned visit to India in December.
US President Donald Trump and his officials have repeatedly criticised India for purchasing Russian crude oil and have imposed a 50% tariff on Indian goods.
HAL did not respond to an email seeking clarification on what capital it plans to use for the project or which airlines have expressed interest in the aircraft.
The company has struggled to produce enough fighter jets for the Indian Air Force, raising concerns about the country's military readiness.
The Russian company UAC is under sanctions from the US, the EU and the UK. The US Department of Treasury described the company as one of the key businesses in Russia's defence industry.
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