Hindustan Aeronautics Ltd. plans to manufacture Russia's SJ-100 aircraft in India to boost regional aviation in the world's most populous country.
The Indian company has signed an agreement with Russia's United Aircraft Corp. PJSC to manufacture the commuter aircraft from the ground-up—a first for the local civil-aviation industry, according to an exchange filing Tuesday. The last time India built a complete passenger aircraft was the AVRO HS-748 between 1961 and 1988. That too was an HAL project.
“The manufacturing of the SJ-100 aircraft marks the beginning of a new chapter in the history of the Indian aviation industry,” HAL said in the filing. “It's a step towards fulfilling the dream of ‘Atmanirbhar Bharat’ in the civil aviation sector.”
What is the SJ-100?
The SJ-100 is a twin-cylinder, narrow-body aircraft for short-haul flights. At present, nearly 200 SJ-100s are flying for 16 airline operators globally. HAL sees the aircraft as a “game-changer” for India's UDAN scheme for regional aviation. Its local manufacturing will also create direct and indirect jobs.
According to HAL, India's aviation sector needs over 200 short-haul aircraft for regional flights and an additional 350 to serve tourist destinations in the Indian Ocean.
HAL did not respond to Bloomberg's emailed queries on the capital outlay for the project and which airlines have expressed interest in the aircraft.
Aircraft manufacturing in India
While the SJ-100 is set to become the the first commuter aircraft to be build from the ground-up in India, the country has a well-entreched aircraft manufacturing industry.
- HAL makes the light combat aircraft Tejas Mark 1A fighter jet designed by India's Aeronautical Development Agency.
- Tata Advanced Systems Ltd., in partnership with Airbus Co., is setting up a final-assembly line in Vadodara for the Airbus C-295 medium transport aircraft.
- Tata Advanced Systems Ltd. also has a joint venture with Boeing Co. — Tata Boeing Aerospace Ltd. — to manufacture fuselages and aerostructures for the Boeing AH-64 Apache helicopter in India.
- Mahindra Aerospace is involved in aerostructure manufacturing and parts for helicopters and aircraft in India.
While the SJ-100 is set to become the the first commuter aircraft to be build from the ground-up in India, the country has a well-entreched aircraft manufacturing industry.
- HAL makes the light combat aircraft Tejas Mark 1A fighter jet designed by India's Aeronautical Development Agency.
- Tata Advanced Systems Ltd., in partnership with Airbus Co., is setting up a final-assembly line in Vadodara for the Airbus C-295 medium transport aircraft.
- Tata Advanced Systems Ltd. also has a joint venture with Boeing Co. — Tata Boeing Aerospace Ltd. — to manufacture fuselages and aerostructures for the Boeing AH-64 Apache helicopter in India.
- Mahindra Aerospace is involved in aerostructure manufacturing and parts for helicopters and aircraft in India.
Separately, other global OEMs have component manufacturing facilities in India as part of their supply chains.
Vladimir Putin's India visit
The India-Russian aircraft deal comes just before President Vladimir Putin scheduled visit to India in December, at a time when ties between the two nations are under intense scrutiny.
On 27 August, the US imposed 50% tariffs on India as a punitive measure for purchasing Russian crude oil, which according to Russian President Vladimir Putin is fuelling Moscow's war in Ukraine.
On Tuesday, HAL shares fell 0.67% to ₹4,725.35 apiece on the BSE even as the benchmark Sensex ended the day 0.18% lower at 84,628.16 points.