Actuality, November, 13, 2007

Multi-purpose transport plane creation agreement is signed between Russia and India during the Manmohana Singha (Indian Prime Minister) visit to Russia.
Each country will invest $300 mln. into the project. The Russian part will be invested at the expense of Indian rupee debt. However, the project realization could be stopped because of the plane engine choice problem.

Mikhail Dmitriev (the head of Federal Service for Military and Technical Cooperation) and Indian ambassador Prabhat Shukla have signed the two countries governments’ cooperation agreement of the multi-purpose transport plane MTA creation program. The agreement will allow the Indian corporation HAL and FSUE (Federal State Unitary Enterprise) “Rosoboronexsport” to make a work project contract by the end of the year. HAL and FSUE “Rosoboronexsport” have already agreed that Russia and India will invest $300 mln. into the project each. This will be enough for the plane development and developmental parts creation. According to Oleg Demchenko, the Irkut Corporation head (it includes Yakovlev design bureau that participates in the plane development), the МТА production certification and its preparation will demand additional means, the amount of which is also necessary to adjust.

Russian-Indian average transport plane MTA (Multirole Transport Aircraft) is developed on the transport plane Il-214 basis. It should replace the Soviet Аn-12 and American C-130 transport planes. Estimated loadlift will be up to 20 tons. It is expected, that the first МТА flight will be in 2012. In 2013 it will be certificated.

“The Ministry of Finance great achievement is that it succeeded in convincing the Indian part to direct the Indian rupee debt on investing the Russian part in the МТА project”, explained Mr. Demchenko. The Ministry of Finance confirmed, that “the Russian-Indian documents necessary for the МТА project realization beginning have been already coordinated”. “The Indian rupee debt” that has mainly appeared because of the former USSR credits totals 81,4 bln. of Indian rupees, that is $2,06 bln. nowadays. This debt will be paid back by Indian rupee means transfer on Vnesheconombank account in the Indian Reserve bank by 2037. “According to October, 1, 2007 there were 43,31 bln. of Indian rupees on Vnesheconombank account (a bit more than $1 bln.) and $33,48 mln. of which were rated ones”, it was explained in the Ministry of Finance. “These means can be used for the Russian enterprises support that plan to invest directly in India”. In particular, the Russian – Indian titanic project will be invested with the rupee debt use.

Russian “Ilyushin” and “Irkut” design bureaus will carry out the MTA project. It is not considered yet where the Russian MTA assembly will be executed. “It can be either the Irkutsk plant (corporation “Irkut”) or Ulyanovsk CJSC “Aviastar-SP” (where all the Russian transport planes are assembled now)”.

МТА is included into the Russian armed forces arms program. The Russian Air Forces plan to buy such 45 planes. The Indian Air Forces have declared an intention to buy 100 МТА. “Ilyushin” design bureau estimates the world МТА demand at 400 planes. Konstantin Makienko (the strategy and technology analysis center expert) determines that the prediction is considerable. “Now the main MTA competitor is С-130J, but it is much more expensive. India buys six С-130J for $1 bln. (more than $166 mln. for one plane) now. At the same time, MTA will cost $50-70 mln.”, points out the expert. “But MTA can rapidly enter the market only if the project develops well because there are Japan and Brazil projects (that are very much alike)”.

According to Oleg Panteleev, the head of “Aviaport” agency analytical department, there can be the MTA engine problem. It is supposed that India will apply Rolls-Royce engine for its own planes. The foreign engine is unacceptable for the Russian armed forces. “Irkut” design bureau can choose either the Perm engine plant, or scientific production association “Saturn”, or “Motor Sich” for only the Russian or Ukrainian provider. But none of the enterprises have ready suitable project.