India out of jet project

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.
K Raghu/Daily News & Analysis

To Read the News in full at Source, Click the Headline