HAL SIGNS MoU WITH RUSSIA’S UAC TO MAKE SJ 100 REGIONAL JETS IN INDIA
1. What Has Happened?
- Hindustan Aeronautics Limited (HAL) — a government-owned Indian aerospace company — has signed a Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (UAC).
- The goal is to manufacture the SJ-100 regional passenger jet in India.
- This will be a major step towards India’s dream of becoming an aircraft manufacturing hub.
- However, this move is sensitive because UAC is under US sanctions due to the Russia–Ukraine war, creating possible diplomatic tensions with the United States.
WHAT IS SJ 100?
- The SJ-100 (earlier called Sukhoi Superjet 100) is a regional passenger jet.
- It can carry up to 103 passengers and fly around 3,530 km.
- It is mainly used for short to medium-distance flights.
- Competing aircraft in this category include:
- Embraer E190 (Brazil)
- Airbus A220 (Europe)
- If this MoU works out, the SJ-100 could become the first full passenger aircraft to be made in India — a milestone in Indian aviation history.
WHAT IS MoU?
- The agreement is not a final contract yet — it is an initial understanding between HAL and UAC.
- HAL and UAC will study the feasibility (how possible it is) of making these planes in India.
- If successful, HAL could:
- Build the SJ-100 for India’s domestic airlines, and
- Possibly export it in the future.
- This would make India part of the global passenger aircraft manufacturing industry, which is currently dominated by Airbus (Europe) and Boeing (US).
WHY IS THIS IMPORTANT FOR INDIA?
- First full passenger jet made in India
- India has made defence aircraft before (like Tejas and Sukhoi Su-30MKI), but this will be the first commercial passenger jet made fully in India.
- The last such project was the AVRO HS-748, made between 1961–1988.
- Boost to “Make in India” & “Atma Nirbhar Bharat”
- This aligns with India’s push to become self-reliant in aerospace and manufacturing.
- Growing domestic aviation market
- India is the third-largest domestic aviation market in the world, after the US and China.
- Passenger numbers are growing rapidly — India needs hundreds of new aircraft in the next decade.
- Support for Regional Connectivity (UDAN Scheme)
- HAL said the SJ-100 could be a “game changer” for short flights under India’s UDAN scheme (which connects small towns and cities through affordable flights).
THE DIPLOMATIC ANGLE: WHY IT IS CONTROVERSIAL?
a) US Sanctions on Russia
- The United Aircraft Corporation (UAC) was sanctioned by the US in June 2022.
- The sanctions were part of US and Western actions against Russia’s defence and aerospace industry following the Ukraine invasion.
- Other countries — EU, UK, Canada, Switzerland, Japan — also sanctioned UAC.
b) India’s Balancing Act
- India has not joined Western sanctions on Russia.
- However, Indian companies usually avoid direct dealings with sanctioned entities because of the risk of secondary sanctions from the US (penalties on third countries doing business with sanctioned firms).
- This MoU could therefore irritate Washington, which already has concerns about:
- India’s import of Russian oil, and
- Defence cooperation with Moscow.
POSSIBLE PROBLEMS FOR THE PROJECT
| Challenge | Explanation |
| US Sanctions Risk | HAL may face complications if US secondary sanctions are triggered. |
| Supply Chain Issues | Western countries have restricted export of aircraft parts to Russia. Many aircraft components (like engines and avionics) are from Western companies. |
| Delays in Russian Manufacturing | Russia is trying to replace Western parts with its own, but progress has been slow. |
| Uncertain Timeline | HAL has not announced when or where the jets will be built. |
Even if sanctions do not directly affect India, technical and supply issues could delay or complicate aircraft production.
BROADER CONTEXT: INDIA USA & RUSSIA
- India has deep defence ties with Russia — examples include: ○ Sukhoi Su-30MKI fighter jets (made in India by HAL) ○ BrahMos missiles
- At the same time, India is also strengthening defence and strategic cooperation with the US (like in Quad and Indo-Pacific initiatives).
- Hence, India tries to balance both relationships, maintaining strategic autonomy — not siding completely with either.
The new HAL–UAC deal will test this balance, as it shows India’s willingness to pursue its own industrial goals even when it clashes with US policy preferences.
ECONOMIC & STRATEGIC SIGNIFICANCE
| Aspect | Importance |
| Aviation Manufacturing | Could kickstart India’s entry into passenger jet manufacturing. |
| Employment | Would create new skilled jobs in the aerospace sector. |
| Exports | India could later export SJ-100 to other regional markets. |
| Technology Transfer | Opportunity for Indian engineers to learn advanced aircraft design and production. |
| Strategic Message | Shows India’s intent to make independent foreign and industrial policy decisions. |
ESTIMATED MARKET DEMAND
HAL estimates that:
- 200 aircraft will be needed for domestic regional routes (within India) over the next decade.
- Another 350 aircraft may be needed for short international flights in the Indian Ocean region.
- So, total demand could reach 550 aircraft — a strong reason for India to build them locally instead of importing.
Note: Connect with Vajirao & Reddy Institute to keep yourself updated with latest UPSC Current Affairs in English.
Note: We upload Current Affairs Except Sunday.
The post HAL SIGNS MoU WITH RUSSIA’S UAC TO MAKE SJ 100 REGIONAL JETS IN INDIA appeared first on Vajirao IAS.