NEW DELHI: The public sector Hindustan Aeronautics Limited (HAL) has been granted licence to build Russian-origin jet fighter engines under a major overhaul plan for the Indian Air Force fleet, say industry sources.

The $275-million (over Rs. 1,265 crore) deal is to acquire and license-produce Klimov RD-33 turbofan engines for MiG-29 fighters.

Under the agreements, finalised during negotiations with Russia's Rosoboron export sales organisation, the Chernyshev Machine-Building Plant — part of Russia's RSK MiG — will supply 20 RD-33 engines from early 2007 under a $25-million (Rs. 115 crore) deal. HAL will license-build a further 120 engines at its site in Orissa under a follow-on deal worth some $250 million.

The RD-33 deals will support part of an upgrade plan for India's MiG-29 fleet, in service since 1986. The IAF is experiencing problems in acquiring spares for the aircraft from Russian suppliers, impacting its operational effectiveness.

The Indian delegation, which discussed the deal, was led by HAL Chairman Ashok Baweja.

Traditionally, strong defence ties between the countries led to New Delhi ordering 16 MiG-29K naval fighters as part of a 2003 deal to acquire a surplus aircraft carrier Gorshkov from Moscow. HAL could also acquire the technology to manufacture RD-33MK Sea Wasp engines for the MiG-29K as part of the new licence production deal, say the sources.

RSK MiG's latest MiG-29OVT development — now being promoted to export customers as MiG-35 — is among several designs likely to contest in an IAF requirement for 126 new fighters. Other likely candidates include Boeing F/A-18E/F Super Hornet, Dassault Rafale, Eurofighter Typhoon, Gripen International's Gripen and Lockheed Martin F-16.

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