article in apr 2008   "...Once additional funding for the Rs2,000 crore project and its partners are firmed up, a prototype would be built and flown in four years..."

http://www.livemint.com/Home-Page/djph8ny7KwM6NNXYQ9zIJJ/Aerospace-lab-to-design-build-90seat-aeroplane.html

This link says 1st flight by 2015

http://www.ibnlive.com/news/india/india-begins-feasibility-study-on-civilian-plane-339716.html