HAL Signs MoU with Russia's UAC to Produce SJ-100 Aircraft in India

Bengaluru, October 28, 2025 – Hindustan Aeronautics Limited (BSE: 541154 | NSE: HAL) has signed a Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (UAC) to produce the SJ-100 civil commuter airplane in India. The agreement, signed in Moscow on October 27, is a significant milestone towards India’s goal of developing an indigenous civil aviation manufacturing ecosystem.

Expanding India’s Civil Aviation Footprint

The SJ-100 is a twin-engine, narrow-body commuter jet already operated by more than 16 airlines around the world with more than 200 aircraft already in operation. Under this agreement, HAL will acquire manufacturing rights in India, and the SJ-100 will become the first commercial aircraft to be manufactured in India after the AVRO HS-748 project that concluded in 1988. The association aligns with the government’s ‘Aatmanirbhar Bharat’ policy and the UDAN scheme, both designed to improve regional air links and induce self-sufficiency in aviation technology.

Strategic and Economic Significance

The agreement consolidates the age-old aerospace cooperation between Russia and India. HAL’s foray into making passenger jets will take its business beyond defense production, create new job opportunities and induce private sector involvement in the supply chain. The shift is likely to make India a competitive force in the regional aircraft market and accelerate the growth of domestic components and sub-systems manufacturing.

Industry Outlook and Market Reaction

India’s civil aviation industry is expected to need over 200 regional planes in the next ten years and another 350 planes for the Indian Ocean region. Shares of HAL were little lower at ₹4,721.50 as of 1:58 pm IST, down 0.74%, as investors practised mild profit-taking after the announcement.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/0c32432a-102a-49dc-aeac-b004b083437e.pdf

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