India”Not Satisfied” With Joint Indo- Russia Multi-Role Transport Aircraft Project

 Indo-Russian Joint project to develop a multi-role transport aircraft is
facing hurdles after the Centre raised objections over the business plan
proposed by Moscow for the project.

India was “not satisfied” over the business plan submitted by the
Russian side as there was nothing much for its engineers and scientists
to do in the development of the proposed aircraft, Defence Ministry
sources said here.

Defence Minister AK Antony had expressed India’s views on the issue to
his Russian counterpart Anatoly E Serdyukov during his visit to the
European nation earlier this month for the 11th meeting of the
India-Russia Inter-Governmental Commission on Military Technical
Cooperation (IRIGC-MTC).

The two sides have now decided to hold a meeting next month to iron out the differences, the sources said.

Antony had also expressed concern at the tardy progress made in the design and development of the MTA.

The two countries want the issues related to the aircraft to be resolved
before the visit of Prime Minister Manmohan Singh to Russia in
December.

The project has already got delayed. The Defence Ministry had last year said it would start by beginning of this year.

The Hindustan Aeronautics Limited and Russian Companies UAC Transport
Aircraft and Rosonboronexport had signed a shareholders’ agreement to
incorporate a Joint Venture Company for design, development and
production of MTA.

The agreement was in pursuance to a deal signed between India and
Russian on November 12, 2007 for design, development and production of a
MTA.

The Joint Venture Company will have 50:50 shareholding and the
investment for the programme was worked out to be USD 600.7 million.