Mumbai, December 05, 2005 (Agencies)

State-owned Hindustan Aeronautics Ltd (HAL) plans to float a joint venture company with engineering major Larsen and Toubro to make aircraft components.

"We are in discussion with L&T... They have submitted a proposal, and we are evaluating it... We want to have a memorandum of understanding first," HAL Managing Director AK Saxena said.

Both the companies plan to have a joint development of composites, parts, and components for aircraft. L&T wants to make major sub-assemblies for both airframe and aero-engines.

"A lot of orders are coming in, and we are seriously thinking about a major participation from the private sector industries, who are capable of delivering quality outputs," he said.

The Bangalore-based aircraft maker recently floated a 50:50 joint venture with French-aeroengine major Snecma for civilian aircraft engines. As per the understanding, HAL will manufacture compressor blades, while Snecma would provide forging and the machining would be done jointly, he said.

Referring to aircraft projects, Saxena said the company would commence limited series production of Intermediate Jet Trainer once they get a firm order from the Indian Air Force.

"We have already ordered for AL-551 higher-power engine from Russia. We developed two prototypes, which are undergoing operational trials," Saxena said.

Designed and developed by HAL, IJT will replace the Kiran basic jet trainer of the IAF starting from 2007-08. IJT would replace more than 200 Kiran aircraft including those 16, which forms the famed Suryakiran aerobatic team of the IAF.

"We have completed the design studies and have agreed on all other formalities. India needs about 45 MTAs and we are just waiting for a firm commitment from the Russian side," he said, adding that both the companies would start the cargo version first with a capacity to ferry 18 to 20 tonnes.

HAL plans to fly the first prototype within 26 months after getting a formal approval from the government.

IAF wants 45 of these aircraft while the Russians were looking for 60 or more. Both the companies were looking for more than 100 orders to start the project to make it commercially viable.

Official sources said the project would be finalised during the Prime Minister's ongoing Russia visit.