Regional aircraft manufacturing could offer a new avenue for India’s aerospace industry as companies explore opportunities to connect smaller cities. A proposed venture involving Russian turboprops would begin with aircraft imports before moving towards an Indian production line.
Omkam Aviations Pvt Ltd has signed a Letter of Intent with Russia’s United Aircraft Corporation (UAC) for 50 IL-114-300 aircraft, ANI reported. The company plans to invest about Rs 1,500 crore in an initial batch of six aircraft and their support system, followed by local assembly and eventual manufacturing under a technology-transfer arrangement.
The proposed investment would rise as domestic production takes shape. However, the company has yet to disclose the total manufacturing outlay or a detailed localisation schedule, while the LOI remains to be converted into firm orders.
From six aircraft to an Indian production line
The proposed programme was discussed at the Innoprom India trade fair at Bharat Mandapam in New Delhi, ahead of the 18th BRICS Summit, according to ANI. Aggarwal said the LOI covers 50 IL-114-300 aircraft, with six aircraft forming the first batch.
“We have signed an LOI for the purchase of 50 IL-114-300 aircraft with the UAC of Russia. Six aircraft will make up the first batch, with an assembly line to be built in India, followed by technology transfer,” he told ANI.
The initial Rs 1,500-crore investment would cover the six aircraft and their support system, while additional capital would be required as the project moves towards domestic production.
Aggarwal also said Sberbank of Russia had committed in principle to support the venture with the required funding, ANI reported. The amount and terms of the proposed financing have not been disclosed.
What is the IL-114-300?
The IL-114-300 is a twin-engine turboprop designed for regional operations. It has a seating capacity of around 66 to 68 passengers and is intended to operate from shorter runways and airports with relatively limited ground infrastructure.
Omkam is positioning the aircraft for connectivity between smaller cities and major economic centres.
Aditya Aggarwal, Executive Director of Omkam Aviations, told ANI that the aircraft could allow passengers from Tier 2 and Tier 3 cities to travel directly to larger economic centres instead of having to connect through major aviation hubs.
He cited potential connections involving cities such as Meerut, Mumbai, Noida, Agra and Pune as examples of the type of regional connectivity the company is targeting.
“This project represents the creation of a sustainable aviation ecosystem in India through skills development and regional connectivity,” Aditya Aggarwal said, according to ANI.
The manufacturing plan
The aircraft import programme is intended to be the first stage of a larger industrial proposal. It is reportedly said that Omkam is planning to move towards 100% manufacturing of the IL-114-300 in India under a full technology-transfer agreement with UAC.
The company also plans to manufacture aircraft in India for export markets, potentially making the programme part of India’s broader push to expand domestic aerospace manufacturing.
This would represent a shift from importing completed aircraft to establishing an Indian assembly and manufacturing base.
However, the details of the proposed localisation roadmap have not yet been disclosed. ANI’s report does not specify which components would initially be manufactured in India, the localisation level targeted during the first phase or the total investment required to reach full manufacturing.
India-Russia aerospace cooperation
The proposal also adds a civil-aviation dimension to India’s broader industrial relationship with Russia.
Govind Gupta, Co-Founder and Director of Omkam Aviations, told ANI that localising aircraft manufacturing and maintenance infrastructure could strengthen industrial and strategic ties between the two countries.
The company expects the project to create an ecosystem around aircraft manufacturing, maintenance and skills development.
Gupta also linked the initiative to the government’s Make in India and Atmanirbhar Bharat objectives, ANI reported.
The technology-transfer component is central to that ambition as the proposed programme would eventually seek to move beyond assembly towards domestic manufacturing.
What does the Rs 1,500 crore cover?
The initial Rs 1,500 crore is expected to cover the first six aircraft and their support system. It is therefore the starting investment for the proposed programme rather than the total capital requirement for establishing a full aircraft manufacturing operation in India.
Omkam expects the investment to rise as the project moves from aircraft acquisition to assembly and eventually domestic manufacturing.
The proposed Sberbank financing support could form part of the funding structure, although the company has not disclosed the size or terms of that commitment, ANI reported.
The 50-aircraft LOI should also be distinguished from a completed purchase order. The conversion of the LOI into firm orders, aircraft deliveries and subsequent manufacturing investment will determine how the programme progresses.
Can the aircraft fill India’s regional connectivity gap?
The IL-114-300’s proposed role is linked to India’s growing regional aviation network. Its 66-to-68-seat configuration and ability to operate from shorter runways are central to Omkam’s plans for connecting smaller cities.
The proposed routes cited by the company point towards a model in which regional airports could be linked directly to major economic centres without requiring passengers to first travel through larger hubs.