Terms for localizing Il-114-300 in India may be agreed by early 2027 - Russian industry and trade minister

NEW DELHI. Sept 10 (Interfax) - The terms for localizing production of the Il-114-300 regional aircraft in India may be agreed in late 2026 or early 2027, Industry and Trade Minister Anton Alikhanov said.

"We hope that we will reach the signing either at the end of this year or at the beginning of next year, specifically of the terms for the localization project," Alikhanov told journalists at the Innoprom. India forum on Thursday.

Domestic Russian supplies of the Il-114-300 are the priority, "but the economies of scale that all industrial enterprises strive for can be achieved, among other things, thanks to the Indian market," he said.

Answering a question about the commercial terms for supplying the Il-114-300 to India, Alikhanov said: "Our task, of course, is to be competitive in price, especially since the technical characteristics of the Il-114 are better than those of the [European] ATR-72 in some parameters. But on the whole we compete with the best international aircraft. I see no reason not to make the right offers that would interest such a promising consumer as India."

PJSC United Aircraft Corporation (UAC, part of Rostec) will be ready to begin organizing supplies of Il-114-300 aircraft to India after the program for localizing their production in that country is approved, the company's CEO Vadim Badekha said earlier on Thursday. At the same time, he clarified that the first aircraft supplied to Indian airlines will be manufactured in Russia, "since the localization process is rather serious, lengthy." In this regard, it is extremely important to validate the Russian type certificate for the Il-114-300 in India. According to UAC estimates, the country will need more than 100 aircraft of this class over the coming decade.

Also earlier on Thursday, UAC signed framework agreements with Indian airlines for the supply of 85 Il-114-300s, including 50 in the interests of Pinnacle Air and 35 for Sleek Aviation. It is planned that an agreement for another 20 aircraft will be concluded with Air Kerala. In addition, preliminary agreements were reached at the beginning of the year on the transfer of six aircraft starting from 2028 in favor of Flamingo Aerospace. The schedules for aircraft deliveries, as well as the terms of their maintenance and obligations for localizing components, will be set as part of separate contracts with customers. UAC expects to conclude the first firm contracts for the supply of the aircraft before the end of 2026.