India may have indigenously-built 70-100 seater civilian aircraft ready in about seven years as the government today gave a nod to the long-delayed strategic project.
A High-Level Committee, headed by Prime Minister Manmohan Singh, decided that a Special Purpose Vehicle (SPV) will be created for this purpose.
According to the original proposal, the design and development of the aircraft was expected to cost Rs 4,355 crore and series production would entail further expenditure of Rs 3,200 crore.
The development of the aircraft is targeted to be completed in five years and further two years would be for trials, sources said.
The Committee took "a major strategic decision for the development of a civilian aircraft, of a 70-100 seater range to begin with, in India", a PMO statement said here.
"The idea is to house the development and production in an SPV that would be created for this purpose. The design capabilities in National Aerospace Laboratories (NAL), Hindustan Aeronautics Limited (HAL) and other institutions in the country would be utilised for this," it said.
Addressing the meeting, Singh said, "I agree that we should start working for the future, even if it takes time and even though there are uncertainties on the horizon."
The PMO statement said development and production partnerships with Indian private sector firms as well as overseas institutions is envisaged in the project.
"Efforts will be made to leverage the offsets that are available in the defence sector for building critical domestic capabilities in high precision manufacturing and avionics," it said.
A High Level Steering Group under V Krishnamurthy, Chairman of National Manufacturing Competitiveness Council, would work out the modalities of this programme.
"This is a strategic sector where there is a need to have a presence in the long term, particularly in view of the rapid growth of our aviation sector," the PMO statement said.
Earlier, India had built a small-sized Saras aircraft.
In the military field, manufacture of Light Combat Aircraft is also in the works.
