The government is likely to allocate around ₹12,511 crore for setting up a Special Purpose Vehicle (SPV) to develop a home-grown regional transport aircraft. According to government sources quoted by Money control, a major portion of the funding will be used for certification, testing and infrastructure. The proposal highlights the complexity and regulatory intensity involved in building a civil aircraft in India.
- SPV for Aircraft Development:
The proposed SPV will act as a dedicated entity to take the aircraft project from the design stage to certification and, eventually, full-scale production. - Focus on Certification & Testing:
A large share of the total outlay is earmarked for regulatory approvals, technical validation and certification, rather than only aircraft design. - High Regulatory Costs:
Officials noted that compliance with safety and aviation regulations accounts for a significant part of the cost structure in civil aircraft development. - Proposal Under Detailed Review:
Government sources said the SPV proposal is currently being examined in detail, with the broad financial framework already in place. - Boost to Regional Aviation:
The regional transport aircraft is expected to support short- and medium-haul domestic routes, strengthening India’s regional connectivity and aviation ecosystem. - Push for Self-Reliance:
The initiative aligns with India’s broader goal of developing indigenous aerospace capabilities and reducing dependence on imported aircraft.