HAL, UAC advance SJ-100 production plan as Indian operators sign preliminary agreements for 85 Il-114-300 aircraft

Hindustan Aeronautics Limited (HAL) and Russia’s United Aircraft Corporation (UAC) are moving closer to an agreement for licensed production of the SJ-100 regional jet in India, as the two countries seek to expand civil-aviation cooperation into manufacturing, maintenance, training and component localisation.

The latest developments came at the INNOPROM India exhibition in New Delhi, where UAC announced preliminary arrangements with Indian operators covering 85 Il-114-300 regional turboprops.

Pinnacle Air signed a letter of intent for 50 aircraft, while Sleek Aviation signed a memorandum of understanding for 35. The agreements do not constitute firm aircraft orders. Delivery schedules, maintenance terms and the localisation of selected components will be set out in subsequent contracts, which UAC expects to sign before the end of 2026.

SJ-100 Production Plan Advances

HAL and UAC have spent several months negotiating the technical, commercial and engineering terms of an Indian production programme for the SJ-100. The plan follows an MoU signed in Moscow in October 2025 and a cooperation agreement signed at Wings India in January 2026.

UAC outlined a phased plan beginning with a customisation centre, followed by assembly from semi-knocked-down kits supplied from Russia.

Later stages would increase Indian participation in aircraft structures, cabin interiors, wiring harnesses and maintenance.

UAC also proposed gradually using Indian-made components and engineering changes within the aircraft’s type design. HAL said the initial aircraft would retain the Russian configuration.

HAL could introduce modifications for Indian requirements later under its agreement with UAC.

Shishir Kumar Patra, Chief Executive Officer of HAL’s MiG Complex, said negotiations had progressed across technical, commercial and engineering areas. HAL plans to increase Indian content gradually and involve private companies in manufacturing and maintenance.

Patra said the proposed licence could include technology transfer, joint development, local manufacturing and long-term operational support. HAL and UAC are examining operating and financial leasing arrangements involving Indian and Russian financial institutions. The objective is to make the aircraft commercially viable for Indian operators and other potential customers.

UAC expects production in India to begin in the coming years and eventually reach 20-40 aircraft annually. HAL estimates Indian demand at around 300 SJ-100s over the next five to ten years. 

Wider Industrial Partnership

Russia is seeking to build an industrial ecosystem around its aircraft rather than limit cooperation to direct sales.

Russian Industry and Trade Minister Anton Alikhanov said the offer could include component manufacturing, service centres, spare-parts storage, and training for Indian personnel. The proposal also includes possible cooperation on avionics and other complex systems.

The two sides are considering a joint engineering centre in India, along with research and education links involving Russian technical institutions. Russian aviation institutes in Moscow and Kazan have also invited Indian students to pursue aviation-related training.

The wider programme covers three aircraft: the Il-114-300 regional turboprop, the SJ-100 regional jet and the larger MC-21 narrow-body airliner. The Il-114-300 is intended for regional routes and smaller airfields. The SJ-100 would target inter-regional services linking medium-sized cities, while the MC-21 would serve higher-volume domestic routes.

Il-114-300 Plans for India

The Il-114-300 agreements give UAC an initial foothold in India as it seeks regulatory approval and local operating partnerships.

UAC said the aircraft is powered by the Russian TV7-117ST-01 engine and uses Russian-produced avionics and other systems. The aircraft received its type certificate in June 2026, and serial production is under way at UAC’s Lukhovitsy Aviation Plant. Russian officials said certification work in India would be coordinated with Indian authorities to enable Indian companies to use the Il-114-300.

“As our cooperation evolves, we are prepared to take the next steps and transition to an industrial partnership model covering service, maintenance, personnel training, and even the localisation of Il-114-300 production in India,” UAC CEO Vadim Badekha said.

UAC also identified cargo, mail, medical evacuation and rescue operations as potential uses for the aircraft.

The company said it was prepared to expand its role in India from aircraft supply to maintenance, training and eventual localisation of production.

The Sleek Aviation agreement adds a training element to the proposed Il-114-300 operation in India through a full-flight simulator centre at the company’s facility.

The agreements with Pinnacle Air and Sleek Aviation are separate from the preliminary agreement UAC and Flamingo Aerospace signed at Wings India 2026. That agreement involved six Il-114-300s and plans to develop Indian capabilities in aircraft interiors, maintenance, assembly and manufacturing.

Flamingo Aerospace is working with UAC to identify customers and develop the technical and financial arrangements required for the aircraft in India.

The three agreements give UAC separate routes into the Indian market. Pinnacle Air and Sleek Aviation are prospective aircraft customers, while the cooperation with Flamingo Aerospace includes commercial development and gradual localisation.

Certification and Financing

The success of both programmes will depend on certification, financing and after-sales support.

The Russian aircraft’s certificates will have to be validated for use in India. Operators will also need clarity on maintenance costs, spare-parts availability, financing, residual values and the timetable for local production.

For the SJ-100, HAL’s involvement could provide an Indian base for assembly, maintenance, training and supplier development. The company’s existing aerospace manufacturing experience could also help establish a domestic support network for the aircraft.

For the Il-114-300, the immediate steps are to convert the Pinnacle Air and Sleek Aviation documents into firm contracts and complete arrangements covering certification, delivery and maintenance. The India-Russia initiative therefore remains at different stages of development. The projects signal a shift in bilateral aviation cooperation—from aircraft purchases towards manufacturing, skills development and longer-term industrial participation.

However, the proposed partnership will become a functioning production programme only after the licensing agreement, firm aircraft contracts, regulatory approvals and localisation plans are in place.

Also Read: UAC Outlines SJ-100 Roadmap for India