• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Madhumathi D.S.

`Work could begin immediately after finalising agreements'

Advertisement

Bangalore Feb. 6 The stage is set for at least one more Indo-Russian joint venture involving Hindustan Aeronautics Ltd since the Sukhoi deal. Now on the anvil is a 50:50 tie-up among HAL and two Russian companies for the multi-role transport aircraft or MRTA for both their needs, according to the top officials of HAL and Russia's United Aircraft Corporation.

A team from HAL and the Department of Defence Production will visit Russia shortly to sort out a few minor issues related to third country exports, according to the DoDP Secretary, Mr K.P.Singh. He told a briefing here that a draft DPT (detailed project report) has been prepared on role sharing.

The partnership being "worked out between the two countries" could mean a joint investment of around $600 million (around Rs 2,700 crore). The two sides would split work equally to design, develop and produce the next-generation military transport aircraft, the HAL Chairman, Mr Ashok Baweja, confirmed.

Russia's Irkut Corporation and the famed Ilyushin Design Bureau are the other partners. The work could begin immediately after the necessary agreements are closed, with the first aircraft getting certified in six years, Mr Baweja told Business Line. Between the two countries, an estimated 200 MRTAs — some for civil use — with 20-tonne lift capacity each would be needed.

If another Russian proposal clicks, HAL will also get into another project to develop the fifth generation fighter aircraft — for which Russia is talking of licensed production of its RD-133 engines. Some 70 per cent of the country's defence hardware is of Russian origin; HAL is manufacturing the Sukhoi 30 fighters for the past couple of years.

Development plans

According to Mr Baweja, "There are joint development plans and they are in advanced stages. The two countries are putting together the partnership" which should be known in a few months. As for investment it may warrant from HAL, he said, "the Government has been supportive of our plans" so far.

Much of the spadework leading to a final pact for both the ventures is understood to have been done when a high profile Russian delegation visited Bangalore and Delhi in late January along with its President, Mr Vladimir Putin, and the Defence Minister, Mr Sergey Ivanov.

According to Mr Alexey Fedorov, President of the UAC — the aviation conglomerate and parent of Sukhoi, Irkut, Ilyushin companies — the new MRTA (or MTA) is aimed at replacing AN12, 32 and the US-made C130.

A protocol of intention has been signed involving the companies and a joint venture for R&D and production has been planned. An inter-governmental agreement is to follow soon, taking the Indo-Russian association of over 50 years to a new level. It has received a preliminary purchase order from the Ministry of Defence, he said at the aerospace seminar that opened here on Monday.

More Stories on : Airlines | Overseas Investments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Indian plans freighter service from July

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line