Thursday, February 10 2005 18:59 Hrs (IST) - World Time -

Bangalore: India's State-run aircraft maker Hindustan Aeronautics Ltd (HAL) has appointed SBI (State Bank of India) Capital, as financial consultant to evaluate the viability of investing in a Russian-led consortium to manufacture a family of regional jets for the global market.

"We will be doing a detailed cost analysis of the project along with SBI Capital next week to evaluate the risk-sharing aspects. We intend to take up about 10 per cent of the aircraft manufacturing, which contains empennage, canopy frame and some critical components," HAL Chairman Ashok K Baweja told reporters in Bangalore at the Aero India air show.

HAL is in talks with Russia's Sukhoi Design Bureau, the main promoter of the RRJ, whose other main partners are France's Snecma and Thales and US aircraft maker Boeing, he said.

India has already expressed intention to invest $ 100 million in the venture, which expects to corner about 16 per cent (about 800 aircraft) of the total market share for the 65, 75 and 95 seater short haul aircraft.

The Sukhoi design bureau of NPO Saturn will design and develop the prototype, with SM-146 engines from Snecma, avionics from Thales and body and certification by Boeing, while HAL will make airframe modules, officials said.