India and its biggest military supplier Russia announced on Sept. 10 a $600 million joint venture to manufacture military transport aircraft for the two countries.
The 50:50 venture was signed by India's state-owned Hindustan Aeronautics Ltd, Russian United Aircraft Corp and the Russian state-run arms exporter Rosoboronexport, the Indian defense ministry said.
The "15-20 ton payload capacity aircraft would meet the requirements of the Indian Air Force and the Russian Air Force," the Indian defense ministry said.
Russia is also in the race for a $12 billion contract to sell 126 fighter jets to the Indian air force and supply hundreds of combat helicopters to the country's million-plus army.
Russia supplies more than 70% of India's military hardware.
Copyright Agence France-Presse, 2010