Bangalore, August 29, 2005 (ANI)

Hindustan Aeronautics Limited (HAL) has finalised plans to produce cargo aircraft with Russian collaboration to replace the ageing An 32s transport aircraft, said HAL Chairman, Ashok K Baweja.

HAL has a 400 million dollars agreement with Russian firms Irkut and Illysion to jointly produce cargo aircraft.

"We are more or less done with a good lot of thinking to replace the ageing AN-32. We are in a joint venture with a Russian side. But we had to get some commitment of the Russian market," said Baweja.

Besides a joint venture to produce a 100 seater aircraft, HAL is also looking at Unmanned Aerial Vehicles' (UAVs) along with another defence public undertaking and a foreign entity.

"'Drone' is meant for target practice. We are keen on a variety of other variants of the LCA (light combat aircraft) for reconnaissance, like a smaller version of the existing ones to be used by the army in smaller formations, armed ones for surveillance and attack," Baweja said.

India has been trying to promote joint venture firms that take advantage of the country's low-cost engineering and science skills and cut development and marketing costs.

Before India's aerospace industry opened up to foreign companies as part of broader economic reforms in 1991, HAL and other state agencies focused for five decades on national defence.

HAL now makes aircraft doors for Airbus, part of Europe's EADS, and is set to produce 44 of the 66 Hawk trainer jets New Delhi is buying from Britain's BAE Systems Plc under a joint programme. AE also has a software joint venture with HAL.