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BANGALORE (BNS): Indian aerospace major Hindustan Aeronautics Ltd (HAL) has inked a contract with Russia's United Aircraft Corporation -Transport Aircraft (UAC-TA) to design, develop and manufacture the Multirole Transport Aircraft (MTA) for the Indian and Russian air forces.

The tripartite deal, between HAL, UAC-TA and their joint venture company, Multirole Transport Aircraft Ltd, was signed in Bangalore on Tuesday.

India and Russia had entered into an intergovernmental agreement in 2007 to jointly develop the MTA on a 50:50 sharing basis. The investment for the programme was worked out at $600.7 million.

HAL, UAC- TA and Russian state arms agency Rosonboronexport later signed a shareholders' agreement to incorporate a Joint Venture Company for design, development and production of the MTA.

Under the new contract, HAL will carry out design and development of the MTA at its Aircraft R&D (ARDC) centre in Bangalore while its Transport Aircraft Division (TAD) at Kanpur will manufacture the prototypes.

Serial production of the aircraft will be taken up at Kanpur where dedicated facilities are being set up, HAL said.

"HAL will showcase its expertise in design of aircraft as well as systems, manufacturing and flight testing while jointly working with the Russian team in Moscow as well as in India," the state-run defence company said.

The MTA will be designed in the 15-20 tone class for the roles of cargo/troop transportation and para-drop/air drop of supplies.

A total of 205 MTAs have been proposed to be built: 100 for the Russian Air Force, 45 for the Indian Air Force and 60 for exporting to third countries.

"The MTA project preliminary design will start immediately on signing the follow up contract on preliminary design on which tripartite discussions have been concluded," HAL said.