HAL, Russia's UAC sign MoU to manufacture SJ-100 passenger aircraft in India; check stock reaction

Hindustan Aeronautics Ltd (HAL) and Russia's United Aircraft Corporation (UAC) have signed a Memorandum of Understanding (MoU) for the production of civil commuter aircraft SJ-100 in India. The agreement was inked in Moscow on October 27, 2025.

The SJ-100 is a twin-engine, narrow-body aircraft, with over 200 units already produced and operated by more than 16 commercial airlines worldwide. Under this MoU, HAL will hold the rights to manufacture the SJ-100 for domestic customers in India.

The collaboration marks the first time a complete passenger aircraft will be produced in India since HAL's AVRO HS748 project, which ran from 1961 to 1988. The partnership highlights the growing cooperation between India and Russia in civil aviation and is seen as a significant step towards India's goal of achieving self-reliance under the 'Aatmanirbhar Bharat' initiative.

Industry estimates suggest India will require more than 200 aircraft of this category over the next decade to boost regional connectivity under the UDAN scheme, along with an additional 350 aircraft for the Indian Ocean region to serve nearby international routes.

The SJ-100 manufacturing programme is expected to strengthen India's aviation ecosystem, enhance private sector participation and generate employment opportunities across the value chain.

On the stock-specific front, HAL was down 0.53 per cent at Rs 4,732 on Tuesday.