Hyderabad, Jan 28 (.) Aerospace major Hindustan Aeronautics Limited (HAL) is set to enter India’s civil aviation jet segment with the 100-seater SJ-100 regional aircraft, targeting regional connectivity, medical evacuation needs, and a growing short-haul market.
HAL has signed a Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (UAC) to manufacture the SJ-100 in India, aligning the programme with the government’s Make in India initiative.
As part of a phased entry strategy, the company plans to lease 10-20 aircraft in flyaway condition before commencing domestic assembly and production.
Speaking at the Wings India event here on Wednesday, HAL Chairman and Managing Director Dr DK Sunil said the SJ-100 is positioned to address the capacity gap between turboprop aircraft and narrow-body jets, particularly on short-haul and underserved routes.
To minimise upfront capital expenditure, HAL will leverage existing infrastructure at its Nashik, Kanpur, Tumakuru and Bengaluru facilities rather than setting up a greenfield plant.
The company is also evaluating leasing structures, including tie-ups with GIFT City-based lessors, to keep acquisition and exit costs low, he said.
HAL estimates a market potential exceeding 200 aircraft of this size in India and neighbouring regions. The company has already received inquiries from multiple state governments, reflecting demand for regional connectivity and special-purpose aviation services, he said.
Sunil said the SJ-100, now fully indigenised with Russian equipment, does not depend on Western components, significantly reducing exposure to sanctions-related supply risks.
Alongside fixed-wing aircraft, HAL expects strong demand in the twin-engine helicopter segment, driven by safety requirements and medical evacuation operations, particularly in northern and hilly regions.
Currently, civil aviation contributes 3-6% of HAL’s revenue, but this share is expected to rise sharply over the next decade. While helicopters will drive near-term growth, the SJ-100 programme is expected to emerge as a major revenue contributor in the medium term, he said.
On exports, Sunil said Dhruv NG helicopters have strong interest from Southeast Asian markets, with deliveries of four aircraft expected this year, subject to certification approvals.
. KNR PRS