India and Iran are discussing the idea of jointly producing a military transport jet, reported the Middle East Newsline (MENL) on Saturday.
The proposal calls for the joint production of an aircraft that could carry both cargo and up to 100 passengers.
The project would be carried out by state-owned companies in India and Iran.
Industry sources said Iran had sent such a proposal to its defense ministry. On the Indian side, the project would be headed by Hindustan Aeronautics Ltd.
Iran is conducting a similar project with the Ukraine, said MENL.
The sources said India had offered to bear the development costs of the multi-role transport aircraft.
Iran would commit itself to purchasing a minimum number of platforms and then the two countries would market the aircraft.
New Dehli is waiting for the Iranian Defense Ministry to respond to the proposal, the sources said, adding that Tehran wanted to present the aircraft as a civilian project.
Earlier this year, India and Iran discussed a range of military projects. These included the upgrades of Iranian aircraft and ground systems, as well as a civilian space program – Albawaba.com