Our Bureau
02:01 PM, March 17, 2017
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Indo-Russian Military Industrial Conference(Image:UAC)

Russian United Aircraft Corporation and Indian Hindustan Aeronautics have signed $300 million worth two Long Term Service Agreements (LTSA) for Indian Air Force’ Su-30MKI fighter jet.

The agreement was signed by the President of UAC Yuri Slyusar and HAL Chairman Suvarna Raju in the presence of Russian Minister of Industry and Trade, D. Manturova and Indian Defense Minister Arun Jaitley at the Russian-Indian military-industrial conference on Friday.

The LTSA includes new spares delivery schedule from Russia for the jets, a logistics hub in Bengaluru and domestic manufacturing of parts for the fighter jets by HAL.

According to the data released by the Indian MoD, the after-sales service agreement for the Su-30MKI fleet will include 200 units and in the future will exceed 270 aircraft. The planned framework of after-sales service for the next five years could reach $300 million. The contract will be valid for five years with a possible extension.

In December 2016, the UAC has acquired the right to supply spare parts and do the repair and servicing of the aircraft it delivered earlier. Signing of this agreement is a big step forward in the history of Russian-Indian cooperation in the sphere of military-technical cooperation.

"India - traditionally is the biggest partner in the Russian aircraft industry. It concerns as supply various models of Russian military equipment to the Indian market as well as joint production programs. Along with the work on programs licensed production, repair and modernization of the Su and MiG, UAC is working with on a program of joint development of aircraft, such as prospective multifunctional fighter (FGFA),” said Russian Industry and Trade Minister AT Manturov.

"Competition in the global market is high. We are interested not only in increasing the volume of technology supply, but also in improving the speed and quality of after-sales service, building an integrated customer support system. The right to exercise the service abroad is an important step in this direction. We believe that this will greatly enhance the effectiveness of the UAC after-sales service of our products abroad. We also look forward to the growth in revenue from this direction,” the President of the UAC Yuri Slusar said after signing.

Further perspective - the creation of joint enterprises in the framework of the initiative ‘Make-in-India’ for the production of parts for Russian products on the Indian territory, using Russian technology.

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