In a major boost to India’s aviation manufacturing sector, Hindustan Aeronautics Limited (HAL) has signed a Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (PJSC-UAC) to produce the SJ-100 civil aircraft. The agreement was signed in Moscow, Russia, on October 27, 2025, marking a historic step toward India producing its own passenger aircraft once again.
MoU Signed in Moscow
The MoU was signed by Prabhat Ranjan from HAL and Oleg Bogomolov from PJSC-UAC, in the presence of D. K. Sunil, Chairman and Managing Director of HAL, and Vadim Badeka, Director General of UAC.
According to HAL, this collaboration will pave the way for local production of the SJ-100 aircraft in India, with manufacturing rights granted to HAL for domestic customers.
About the SJ-100 Aircraft
The SJ-100 is a twin-engine, narrow-body commuter aircraft, designed for short-haul regional flights. So far, more than 200 SJ-100 aircraft have been built and are being operated by over 16 commercial airline operators worldwide.
HAL said, “SJ-100 will be the game changer for short-haul connectivity under the UDAN Scheme in India. Under this arrangement, HAL will have the right to manufacture SJ-100 aircraft for domestic customers.
This collaboration between HAL and UAC is the result of mutual trust between the organisations. This will also be the first instance wherein a complete passenger aircraft will be produced in India. The last such project was HAL’s production of AVRO HS748, which started in 1961 and ended in 1988.”
Boost to India’s Regional Connectivity
The agreement comes at a time when India’s regional aviation market is expanding rapidly. HAL estimates that in the next ten years, the country will need over 200 jets in this category for regional connectivity and another 350 aircraft for international routes within the Indian Ocean region.
This demand is driven by the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which aims to improve air connectivity to smaller towns and remote regions. With the SJ-100 production line set to begin in India, HAL is expected to play a major role in meeting this growing demand.
India’s First Passenger Aircraft in Decades
This collaboration is historic because it marks the first time in decades that India will manufacture a complete passenger aircraft. The last such project was HAL’s AVRO HS748, produced between 1961 and 1988. The SJ-100 program is expected to revive India’s civil aircraft manufacturing capability and reduce dependence on imported commercial jets.
Strategic Collaboration With Russia
This MoU strengthens the long-standing India–Russia partnership in the aerospace sector. Both countries have previously worked together on defence platforms like fighter jets and helicopters. The SJ-100 project extends that cooperation into the civil aviation space, signalling a new era of industrial collaboration.
India’s Leap Toward Civil Aviation Independence
The SJ-100 project could be a turning point for India’s civil aviation ecosystem. Beyond boosting local manufacturing, it opens the door for technology transfer, job creation, and the development of a domestic aircraft supply chain.
This move aligns with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, positioning HAL as a central player in India’s aviation future.
