Hindustan Aeronautics Ltd (HAL) on Wednesday, january 28, announced its plan to set up a final assembly line in India for Russia’s SJ100 regional passenger aircraft under its partnership with United Aircraft Corporation, marking a significant step in India’s civil aviation manufacturing ambitions.Speaking at the Wings India 2026 aviation event in Hyderabad, HAL Chairman and Managing Director said the company is targeting three years to operationalise the final assembly line, with the Nashik facility identified as a suitable location for assembling the SJ100 aircraft in India.
While the assembly line is being readied, HAL plans to lease SJ100 aircraft in flyaway condition to kickstart operations. The CMD said the company is working with leasing companies at GIFT City to structure the leasing arrangement and plans to lease 10 SJ100 aircraft over the next one year, with a total of 20 aircraft to be leased in parallel.
HAL is also in discussions with two Indian airline operators to deploy the leased SJ100s, he said.The push into civil aviation is part of HAL’s broader diversification strategy. The CMD reiterated that the company is targeting around 25% of its turnover from civil aviation over the next 10 years, compared with its current predominantly defence-led revenue mix.
While the assembly line is being readied, HAL plans to lease SJ100 aircraft in flyaway condition to kickstart operations. The CMD said the company is working with leasing companies at GIFT City to structure the leasing arrangement and plans to lease 10 SJ100 aircraft over the next one year, with a total of 20 aircraft to be leased in parallel.
HAL is also in discussions with two Indian airline operators to deploy the leased SJ100s, he said.The push into civil aviation is part of HAL’s broader diversification strategy. The CMD reiterated that the company is targeting around 25% of its turnover from civil aviation over the next 10 years, compared with its current predominantly defence-led revenue mix.
Beyond fixed-wing aircraft, HAL continues to see strong traction in the rotary-wing segment. The company is expecting large helicopter orders from the defence sector and currently has the capacity to manufacture 30–35 helicopters annually. As part of existing commitments, HAL is scheduled to deliver 10 helicopters to Pawan Hans in FY27.
The SJ100 programme, along with leasing and assembly plans, positions HAL to play a larger role in India’s civil aviation ecosystem as the government pushes for domestic manufacturing and reduced reliance on imports.
Shares of the company closed 4,633 on Wednesday. The stock has surged 28.72% in the past one year.
