India gambles on Boeing-Sukhoi venture

[sikder]

India has decided to enter the highly competitive passenger-aircraft market, joining a Boeing-Sukhoi venture to produce aircraft for regional and local airlines that will cover short-to-medium-haul operations.

Spurred by growing economic stability and bulging foreign reserves, government-owned, Bangalore-based Hindustan Aeronautics Limited (HAL) has decided to stake US$218 million as risk money in the venture, accounting for only 5% of the total investment. The decision was influenced by a new government policy to encourage both government-owned and private companies to acquire equity in overseas companies and ventures.

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http://www.atimes.com/atimes/South_Asia/FH12Df02.html

[Roger Smith]

HAL investments in Boeing-Sukhoi venture will save time and money on R&D and will jump start on the projects/ventures with these companies immediately. :)

[The Watcher]

only 5% of the total investment.


HAL is part of 5% of the total investment in project which is for civilian aviation and has practically no military significance at this time.

[Roger Smith]

only 5% of the total investment.


HAL is part of 5% of the total investment in project which is for civilian aviation and has practically no military significance at this time.


To start projects at 5% on commercial basis with world renowned companies like Boeing and Sukhoi is a great achievement for HAL. :)