The SJ-100 is a twin-engine, narrow-body regional jet, with more than 200 units already built and operated by over 16 commercial airlines worldwide. HAL described the aircraft as a potential “game changer” for India’s regional connectivity, especially under the government’s UDAN scheme aimed at affordable air travel.
HAL emphasized that this collaboration represents the first full-scale production of a passenger aircraft in India since the AVRO HS-748 program, which ran from 1961 to 1988. The company said the venture demonstrates mutual trust between the two aerospace organizations and paves the way for expanding India’s aviation manufacturing capability.
According to HAL, the Indian aviation market is projected to require more than 200 jets of this type over the next decade to enhance regional connectivity, along with an additional 350 aircraft to serve destinations in the Indian Ocean region and nearby international hubs. The corporation added that local manufacturing of the SJ-100 would contribute to India’s “Aatmanirbhar Bharat” (self-reliant India) vision, while also spurring growth in the private sector and generating numerous direct and indirect jobs across the aviation supply chain.
The MoU was signed in Moscow on October 27, 2025, by Prabhat Ranjan representing HAL and Oleg Bogomolov on behalf of UAC.
Defence Minister Rajnath Singh hailed the agreement as a landmark development for India’s civil aviation sector. He stated that the SJ-100 would redefine short-haul travel under the UDAN initiative and mark a major step toward achieving self-reliance in aircraft manufacturing. “The SJ-100 will be the first complete passenger aircraft to be produced in India since the AVRO era. This collaboration will also empower the private industry and create significant employment opportunities,” he said.