New Delhi: State-owned Hindustan Aeronautics Limited (HAL) on Tuesday signed an memorandum of understanding (MoU) to produce Russian origin commercial jets in India, looking to target the domestic market for short haul flights.

The memorandum of understanding (MoU) was signed in Moscow with Public Joint Stock Company-United Aircraft Corporation (PJSC-UAC) for the production of civil commuter aircraft SJ-100, over 200 of which have already been produced in Russia.

'Game-changer' for UDAN

HAL described the understanding as a "game-changer" for short-haul connectivity under the UDAN Scheme in India.

"Under this arrangement, HAL will have the rights to manufacture SJ-100 aircraft for domestic customers" read an official release by the company.

Last aircraft made in 1988

The last aircraft produced by HAL that was rated for commercial flights was in 1988.

The public sector unit produced Avro HS 748 from 1961 to 1988, but most of these aircraft were used by the armed forces.

SJ-100 is the first commercial jet that the state-owned company will produce, subject to orders from Indian airlines.

HAL estimates that over the next 10 years, the Indian aviation sector will require over 200 jets in this category for regional connectivity and an additional 350 aircraft for the Indian Ocean region to serve nearby international tourist destinations.

The order book of the public sector aviation giant is currently in excess of ₹2 lakh crore, most of which is for supply of light combat aircraft to the air force.

In addition, the company also has orders for basic trainers, utility helicopters as well as combat helicopters.