HAL estimates requirement of over 314 rotocraft of same class across the Indian Armed Forces to replace existing Mil Mi-17 helicopters in service in India.
[5] Early on, it was recognised that the type would be primarily marketed towards military customers, especially the Indian armed forces, and that the tentative programme would greatly benefit from the involvement of a foreign manufacturer in a partnership arrangement.
[4] Speaking in September 2008 on the company's ambitions for the MLH, HAL Chairman Ashok Baweja stated: "We plan to develop and build 10-tonne class helicopters in partnership with either the Eurocopter or the Russians...
HAL were also keen to explore the potential for export sales of the MLH, the prospects of which being recognised to greatly depend upon the foreign partner select to participate in the programme.
[citation needed] Speaking at a national seminar held in December 2014, HAL's chief test pilot, Wing Commander Unnikrishna Pillai, gave a talk on the design challenges posed development of medium and heavy lift helicopters in India.
He said that, following on from the expertise gained in earlier projects, the Rotary Wing Research and Design Centre (RWR&DC) of HAL has become confident and is well poised to develop medium lift helicopters.
[5] In February 2017, the MLH proposal remained in the conceptual stage; it was yet to be cleared by HAL's board; accordingly, at the time, it was yet to commence formal design work.
At the time, HAL is in the process of developing a large, ₹600-crore helicopter manufacturing complex in Tumakuru; this is to be the hub of the company's rapidly expanding rotorcraft division.
[12] By 2021, the scale models have been undergoing trials, the flight of a full-sized prototype is expected in 2025-2026 ahead of the type's intended induction into the armed forces.
A specialised version for the Indian Navy will further be developed with greater range, a higher payload capacity and furnishings for maritime operations.
As per the policy, a private sector entity will form Special Purpose Vehicle (SPV) with HAL by acquiring 51% stake after getting minimum order assurance from Indian Armed Forces.
[25] On 29 December 2023, Defence Secretary Giridhar Aramane established a new design and testing facility at the HAL Aero Engine Research and Development Centre (AERDC) in Bengaluru.
[25][31][32] During 2008, HAL stated that it intends to offer the 10-tonne MLH to the Indian Navy for the purpose of meeting its established requirement for a fleet of heavy-lift helicopters.
[4] According to an official statement made during early 2017: "HAL will target export orders, aiming to replace ageing fleet of similar class of helicopters that are operational in more than 40 air forces".
[6] As of 2017, a total of four distinct versions of the MRH have been planned, including a navalised maritime variant and a civilian-orientated model, for which HAL intends to achieve civil certification of.
[5][11] HAL has commented that the company has been examining the prospects of the indigenously developed MLH essentially replacing the Mi-17 helicopters that are in widespread use both abroad and in India, especially by its heavy use by most frontline operations by the Indian Air Force; possessing broadly specifications, the fledgling rotorcraft is to be capable of performing a greater number of roles than the Russian Mi-17.
[33] In July 2021, the Indian Navy formally involved itself in the project, envisaging a navalised version of the helicopter for anti-submarine and anti-surface warfare roles.