Mahindra Aerospace is customising its small planes built in Australia for a potential role as utility aircraft in India even as it plans to test-fly its Indian-built five seater aircraft by June.

The aerospace arm of the eponymous utility vehicle manufacturer aims to enter the country’s almost non-existent general aviation market by projecting its small aircraft for roles such as cargo carriers and air taxis. ?In India, the utility market has not yet opened up yet,? said Karthik Krishnamurthy, chief technology officer, Mahindra Aerospace. ?There is potential for general aircraft in India which has not been tapped. You will see opening up of the market over the next couple of years.?

The general aviation market globally is estimated at $5 billion, nearly half of it turboprop aircraft which includes such that Mahindra manufactures through its Australian subsidiary, Gippland Aeronautics, which it acquired in 2009.

Mahindra is currently looking at customising its aircraft such as the eight seater GA8 Airvan with an alternate diesel cycle engine to suit the Indian market. ?We are seeing enquiries from people who want to run it as a charter operator,? said Krishnamurthy. ?Its very early days for the industry but I think we are seeing the beginning of the change.?

Meanwhile, the company also expects to get a type certification for the NM5, the five-seater plane it is building as a public private partnership with National Aerospace Laboratories, in about 18 months from the first flight of the prototype later this year.

?It would be the end of 2012 before we can even get the type certification. So we are saying 2013 is the likely entry into service,? said Krishnamurthy.

The company also has plans to set up an aircraft assembling unit by then, in addition to the plant it is setting up on a 20 acre plot near Bangalore to manufacture components and aero structures.

The Bangalore plant, to be operational in 16-18 months, would cater to aircraft parts for the aviation industry and also cater to offset opportunities, said Arvind Mehra, Executive Director and CEO, Mahindra Aerospace Private Limited.