New Delhi: India has rejected a proposed Russian business plan to develop a multi-role transport aircraft (MRTA) as it felt the plan left no scope for any contributions from its own engineers and scientists.
India's ministry of defence said it was "not satisfied" over the business plan submitted by Moscow.
Defence minister AK Antony expressed India's views on the issue to his Russian counterpart Anatoly E Serdyukov during his visit to the European nation earlier this month for the 11th meeting of the India-Russia Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC).
The two sides have now decided to hold a meeting next month to iron out differences, sources said.
Reports suggest Antony had also expressed concern at the slow progress made in the design and development of the MRTA. Both nations may be anxious to resolve issues related to the aircraft before the visit of prime minister Manmohan Singh to Russia in December for an annual summit.
The project already stands delayed with the defence ministry's earlier projections of commencement at the beginning of this year now standing nullified.
The Hindustan Aeronautics Ltd and Russian entities UAC Transport Aircraft and Rosonboronexport had signed a shareholders' agreement to incorporate a joint venture company for design, development and production of the MRTA.
The joint venture company is to have a 50:50 shareholding and the investment for the programme was worked out to be $600.7 million.