India and Russia on Thursday agreed to set up a joint venture to manufacture a military transport plane.
Under the deal, each party will pay $300.35 million to the JV's charter capital.
Hindustan Aeronautics Ltd (HAL) and United Aircraft Building Companyexpected to sign a deal in March during Prime Minister Vladimir Putin'svisit to New Delhi, but India failed to get the paperwork ready and thesigning was delayed.
Manufacturing facilities will be set up both in Russia and in India. Atotal of 205 planes are to be made, 30% of which may be exported tothird countries.
Russia and India signed an intergovernmental agreement on the jointdevelopment and manufacturing of the Medium Transport Aircraft (MTA) in2007.
The first MTA is expected to make its maiden flight in 2016-18.