Plans to invest $100m shelved after the Russian Regional Jet project declined to outsource components.
BANGALORE: India has backed out of a multinational project to build a family of regional jets after it was told that it should not expect any work to be outsourced to the country against its minority stake.
The state-run aerospace firm Hindustan Aeronautics Ltd (HAL) had initially proposed to invest $100 million for 10 per cent of the total equity in the Russian Regional Jet (RRJ) project.
Sukhoi design bureau has designed the aircraft. Engines will be jointly developed by the French firm Snecma and Russia’s Saturn. Avionics will be provided by Thales and design certification will be done by Boeing. It will be built in Russia.
US firm Honeywell is also a partner in the aircraft project whose first flight test is expected this year and the maiden aircraft would be delivered by 2007 after certification.
“The financial investment was huge but it would not have benefited us in building components and systems for the project,” defence ministry sources told DNA.
The Russians have indicated that the $100 million investment entailed only equity stake, but the aircraft would not have any components and systems made in India.
HAL officials in Bangalore confirmed that it had shelved plans to participate in the passenger plane project.
Initially, the promoters of the jet, who had asked HAL to participate in the programme, had hinted at outsourcing airframe modules like the empennage, canopy frame and other critical components, but did not guarantee the work to India, sources said.
The planes, designed to be faster than turbo-prop planes flown on short routes and cheaper to fly than Boeing and Airbus jets, are expected to corner about 16 per cent (about 800 aircraft) of the total market for planes in this category over 15 years. The RRJ is intended to compete against the Antonov AN-148, EMBRAER E-jets and the Bombardier C-series aircraft. Snecma officials had indicated last year that they would outsource engine components and systems from India for the project, but did not make any headway.
Jet Set
$100 million would have entitled India to
10% stake in the project
The planes that will have less than
100 seats, will fly less than
5000 kms at a stretch
All About RRJs
Sukhoi Design Bureau conceived the aircraft in 2002
Aviation majors from Russia, US and France take part
Russian government has given nearly $ 100 million for project
Maiden flight this year, first delivery by 2007
Plans to sell 800 aircraft in 15 years
To compete with Antonov An-148, EMBRAER E-jets and the Bombardier C-series aircraft
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