According to the statement, Civilian Aircraft Industry is a strategic sector where the Indian Government feels a need to have a presence in the long term perspective, particularly in view of the rapid growth of the national aviation market.
The HLCM took a major strategic decision for the development of a civilian aircraft, of a 70-100 seater range to begin with, in India. The idea is to house the development and production in an SPV that would be created for this purpose,“ said in the statement of the PM‘s Office.
The development of the new Aircraft is planned to be based on Hindustan Aeronautics (HAL), a stated-owned aerospace company mainly engaged in military and general Aircraft manufacturing, and National Aerospace Laboratories (NAL), a research and development Agency. The Government also plans to offer private sector firms as well as foreign companies to contribute to the project.