India and Russia have registered a joint venture, MTA Limited, to develop and manufacture a new transport aircraft in line with previous agreements, the head of Hindustan Aeronautics Limited (HAL) said.
An agreement for MTA Limited between HAL and Russia's United Aircraft Corporation and state arms exporter Rosoboronexport was signed in September.
"The joint venture was registered in the beginning of December in Bangalore," Ashok Nayak told RIA Novosti. "Work on the preliminary design will start in January 2011".
With a payload capacity of 20 tons and speed of 810 km per hour, the multirole transport aircraft (MTA) is set to be another milestone in decades-old India-Russia defense relationship that is evolving from a buyer-seller to co-developers of cutting-edge military equipment.
The total development cost is around $600 million to be equally shared by both sides.
Manufacturing facilities will be set up in both Russia and India. At least 205 planes are to be made, 30 percent of which may be exported to third countries.
The MTA is expected to make its maiden flight in 2016-18. RIA Novosti
