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The Times of India, a leading English daily, reports Thursday that Adani Aerospace has signed a Memorandum of Understanding with Embraer. Neither group commented on the latest development. Details such as the investments proposed for the FAL, in which Indian state the plant will come up, and by when manufacturing will start, were not immediately available.
The final announcement of the tie-up is widely expected to be made at the Wings India Air Show, to be held from January 28 to January 31 this year in the southern Indian city of Hyderabad. Wings India, a purely civil aviation air show, is held once every two years.
An Indian Commercial FAL
India does not have a civilian aircraft FAL as yet, despite being the third-largest domestic aviation market globally, after the US and China. Airbus, the European aircraft manufacturer, has two FALs in India—one for the manufacture of the civilian H125 helicopter and the other for the military transport aircraft, the C295. Both these FALs are in collaboration with the Tatas, who are also the owners of Air India, along with Singapore Airlines.
In June last year, while speaking at the IATA AGM in Delhi, Narendra Modi, the Indian Prime Minister, called on global aviation companies to go beyond manufacturing and invest in designing aircraft and components in India, highlighting the country’s liberal investment climate and fast-growing aviation ecosystem.
“I request all aviation players to implement Design in India along with Make in India,” Modi said, speaking at the IATA summit. “For the world’s leading aviation companies, India presents an excellent opportunity for investment.”
Government’s incentives for airlines ordering from the Embraer FAL
The Indian government is said to be considering providing fiscal incentives to airlines that place orders with the Embraer FAL in India. Details of the incentives are yet to be worked out, officials said. In June last year, Embraer officials told the Indian media that it would increase sourcing from India and could even set up a FAL in India.
Embraer bullish on India
Officials of the Brazilian company have been very bullish on the Indian market. The Brazilian aircraft manufacturer has a presence in the civilian airspace through Star Air, a regional airline. But its aircraft are also flown by defence forces in India and are a popular business jet.
Embraer is also set to be in talks with IndiGo and Air India to sell its E2 jets in India. IndiGo and Air India control over 80 percent of the domestic aviation market in India.
Adani Group’s presence in various fields, including airports in India
The Adani Group is the largest private-sector airport operator in India, with operations at eight airports in Mumbai and at the newly opened Navi Mumbai. It also has a presence in energy and utilities, transport and logistics, and sports, among others. At the moment, the Airports Authority of India, a state-run enterprise, operates the majority of the over 100 civilian airports in India.
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