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Speaking to Reporters, Aziz Akbarian said that following efforts by the Iranian administration and the Parliament, a contract valued at 16 trillion rials ($380 million) was signed between the Defense Ministry and domestic automakers.

According to the deal, the Defense Ministry’s industries will supply 470 types of auto parts that were previously imported, the lawmaker said.

He added that all of the products due to be manufactured by the Defense Ministry are electronic parts.

Last week, a deputy defense minister said the ministry plans to boost cooperation with domestic companies producing auto parts in a bid to counter economic sanctions against the Islamic Republic’s automotive industry.

Back in January, the CEO of Iran’s major car manufacturer Iran Khodro (IKCO) said his company is employing the technology that PSA Peugeot Citroen has brought to Iran, although the French automaker has left the country in light of the US sanctions.

The IKCO chief said his company tries to continue producing the cars that were to be manufactured jointly under the contract with Peugeot even if the French side does not agree to keep the agreement.

In June 2016, Iran Khodro and the French carmaker Peugeot-Citroen (PSA) agreed to launch a joint auto company in Tehran under a joint venture worth 400 million euros.

But in 2018, the French company reneged on the agreement and decided to obey the US sanctions against Tehran by leaving Iran.

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Shahram Adamnejad, a deputy transportation minister, said that major government departments, including Iran’s Ministry of Communications, were contributing to plans to launch satellite Internet service during flights by Iranian carriers.

“Domestic private companies providing satellite services are now capable of offering (in-flight Wi-Fi) services through the hub inside the country and international satellites,” Adamnejad told IRNA, adding that airlines were carrying out feasibility studies on the issue.

The official said a full launch of in-flight Wi-Fi by Iranian airlines would significantly boost entertainment services offered across the transportation system in the country, including on rail and in shipping.

Officials in the Iranian Space Agency said last month that they were working with Iran Civil Aviation Organization to speed up the launch of Internet services during flights by Iranian airlines.

Some Iranian carriers have been offering Internet to their VIP passengers through air-to-ground (ATG) service, a technology which means the service could be very slow in places where the coverage is poor.

Major international airlines have tried to replace the ATG service with satellite-based Internet as they seek better revenues through amenities offered to passengers.

The new technology can also help carriers optimize the use of technical specifications in the cockpit, including those related to routes, weather and maintenance issues.

Plans by Iranian airlines to launch in-flight Wi-Fi come as some of them have suffered in recent years from sanctions imposed by the United States.

Washington has accused Iranian carriers of helping Iran develop its nuclear and missile programs, allegations that have repeatedly been rejected by both aviation and military officials.

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