Russia keen to tap India as global aeronautics manufacturing base

[[Bregs]]

Russia is ready to tap India as a global aeronautics manufacturing base and is willing to partner local firms in developing their technological and production capabilities in the aviation sector, an official representing a delegation from the country said during bilateral talks held here.

India, on its part, expressed eagerness to jointly develop iron ore and coal mines in Russian territory and sought technical inputs on producing high-grade cold-rolled, grain-oriented steel, typically used in power transmission equipment.

Ramesh Abhishek, secretary, department of industrial policy and promotion in the ministry of commerce and industry, led the bilateral talks held under the aegis of an India-Russia working group on modernization and industrial co-operation. The Russian delegation was headed by the deputy minister of industry and trade Alexander Potapov.

While both sides acknowledged their mutual interest in expanding bilateral cooperation between Russian and Indian companies in different sectors, more focused discussions were held on modernization, mining, fertilisers and civil aviation.

Civil aviation

“In the civil aviation sector, Russian side declared its readiness to participate in the Make in India program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries,” according to a statement issued by the commerce and industry ministry.

The Russians also reiterated their interest in the possible participation of Russian companies in the Delhi-Mumbai Industrial Corridor.

In mining and metallurgy, the two sides agreed to exchange information on potential areas for co-operation in view of India’s request to develop coal fields and iron ore mines in Russia, according to the statement.

http://www.thehindu.com/business/In...nautics-manufacturing-base/article9003809.ece

 

[Ankit Kumar 002]

The Deputy Head of Russian Federation was on a visit and also met PM , where PM said he is "Excited about Putin's visit this December " (Annual India-Russia Summit ).

 

[PARIKRAMA]

Basically its production of SSJ 100 and getting work done in India under MII. This way the 98 seater wishes to get orders from LCC carriers like Indigo, GoAir and Spicejet by offering a low cost solution to connect smaller airports and Regional routes.


Related article

Russia to Enter $300 Bln Indian Civilian Aircraft Market in a Big Way
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BUSINESS
18:02 18.08.2016Get short URL
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Russia is set to launch a production unit for aircraft parts and equipment in India under the ‘Make in India' program.

US and European aviation companies are likely to face major competition in India as Russia has proposed to set up a production line for India’s civil aviation sector. A Russian delegation headed by Alexander Potapov, Deputy Minister of Industry & Trade of the Russian Federation, put forward this proposal before Indian officials of the Department of Industrial Policy and Promotion in New Delhi.

A statement released by India’s Ministry of Commerce and Industry says, “In the civil Aviation sector, the Russian side declared its readiness to participate in the “Make in India” program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries.”

Russia wants to introduce Sukhoi Superjet 100 (SSJ100) civilian aircraft in India and has a target set to put out at least 50 SSJ100 in the next three to five years. Sukhoi expects to sign a deal this year with Tata Advanced System to manufacture key airplane parts in India.

Russia’s proposal to take part in the ‘Make in India’ program comes soon after the announcement of the New Civil Aviation Policy by India which says,

“India will provide fiscal and monetary incentives and fast-track clearances to global original equipment manufacturers and their ancillary suppliers. In the event that the cost of Made-in-India aircraft and components work out to be higher than those supplied from their original sources, the government will consider an incentive package to nullify the cost differential.”

India is one of the fastest growing aviation markets in the world and is expected to displace the UK as the third largest market by 2026 while Centre for Asia Pacific Aviation, a consulting firm, predicts that domestic air traffic of Indian civil aviation market likely to surpass 100 million by 2018 as compared to 81 million in 2015-16.

Keeping in mind the growth of the air traffic, Boeing, the US-based aircraft manufacturer, projects a demand for 1,850 new aircraft in India over the next 20 years. Value of this demand will be approximately worth USD 265 billion. However, Ministry of Commerce & Industry itself projected a demand of 800 aircrafts by year 2020.

Apart from manufacturing aircraft, there are vast opportunities in Maintenance, Repair and Overhaul (MRO) as well. According to the Ministry of Civil Aviation, “The MRO business of Indian carriers is around USD 751 million, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc.” The Indian government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines.

http://sputniknews.com/business/20160818/1044402254/russia-india-aircraft.html

 

[Feroz Alam Khan]

The Deputy Head of Russian Federation was on a visit and also met PM , where PM said he is "Excited about Putin's visit this December " (Annual India-Russia Summit ).

Before that the two will be meeting in BRICS meet to be held in Goa, India on 15th Oct 2016, as well.