The Indian/Russian Multirole Transport Aircraft project will undergo its critical design review early this year, as the nations' governments continue to structure their collaborative $600 million funding package, and while Moscow decides on a prime contractor for its share of the work.

New Delhi and Moscow signed a bilateral agreement on the MTA project last November, agreeing to equal funding of the initiative after more than two years of talks.

India's share will directly support work conducted by Hindustan Aeronautics, while most of Russia's state funding will come via a special Indo-Russian fund created to support the development of advanced technologies. This also covers the nations' partnership on a fifth-generation fighter project.

NPK Irkut acts as the current lead Russian enterprise on the MTA project, working jointly with Ilyushin, which is developing a Russian air force version dubbed the Il-214.

Irkut's Aviastep design house has completed its activities on the concept, ahead of an Indian assessment early this year. "The work on MTA has started in earnest," says Irkut president Oleg Demchenko.

Russian industry sources expect funding to become available for the selected prime contractor soon, with Moscow considering providing state guarantees in its fiscal year 2008 budget, plus a 15-year credit package.

With Moscow still advancing plans to merge the activities of its fixed-wing aircraft manufacturers, a decision has yet to be made on which Russian concern will lead the project.

However, the selection will be between Irkut - which will maintain some independence within the OAK structure - and Ilyushin, which will form the base of the new organisation's transport aircraft business unit.

Although Ilyushin is considered the more likely choice, Demchenko says: "The issue is yet to be decided. We have not quit the project yet."

Irkut must also decide between taking part in the MS-21 airliner and the MTA, he says. "If we allocate our entire resources to the MS-21, we will not have sufficient power for the MTA."

Ulianovsk-based Aviastar is favoured for Russian series production, because Irkut's IAZ plant in Irkutsk is already occupied with the MS-21 and Yakovlev Yak-130 trainer.

Source: FlightGlobal.com