Schilliger, who was recently in India, was quoted by India Strategic defence magazine (www.indiastrategic.in) as saying that RUAG would have no objection to HAL selling the new generation Dorniers to the Indian Air Force, Indian Navy and Coast Guard, which together ply some 120 aircraft but of the 1980s legacy.
RUAG's interest is to buy this aircraft in Next Generation upgraded version for European requirements. As RUAG has phased out its own Dornier facility, it has to source the aircraft from HAL.
The Indian company would be free to use the NG technologies for its own requirements, Schilliger said, adding that RUAG would provide all the technical assistance at no cost, and buy five to six aircraft per year in flyaway green condition - meaning any internal fitments or special systems would be installed in Germany. The company foresees a requirement of about 40 aircraft over the next few years, primarily for surveillance missions.
"If we were to begin today, the production process of this twin-engine turboprop in India along with HAL could begin next year itself with delivery from 2015 onwards," India Strategic quoted him as saying.
Financials have not been disclosed pending finalisation of the deal.
Meanwhile, the Indian defence ministry is reportedly considering a proposal for 54 more Dorniers for the Indian armed forces. It would be up to HAL to offer the old or the new versions, depending upon user requirements and costs involved.