Government inks deal with Airbus for 56 C-295 military transport aircraft
Under the Rs 22,000-crore pact, India will procure 16 aircraft in readymade condition while the remaining 40 would be manufactured in India by a TATA-led consortium within 10 years of the deal signing in an effort to strengthen the indigenous capabilities.
FollowNew Delhi: The Defence Ministry and Spain-based Airbus Defence and Space company have signed a pact to procure 56 C-295 transport aircraft for the Indian Air Force.
Under the Rs 22,000-crore pact, India will procure 16 aircraft in readymade condition while the remaining 40 would be manufactured in India by a TATA-led consortium within 10 years of the deal signing in an effort to strengthen the indigenous capabilities.
However, the aircraft in fly-away condition will be delivered within 48 months from the day of contract signing.
It is considered to be one of the largest deal that any private sector firm has got.
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“Contract signed between #MinistryOfDefence and @AirbusDefence &Space, Spain for procurement of 56 C-295 transport aircraft for the #IAF,” the defence ministry said.
Last month, the Cabinet Committee on Security had cleared the procurement proposal in a bid to replace the ageing Avro transport aircraft.
"All aircraft will be installed with indigenous Electronic Warfare Suite," the defence ministry had said.
This is the first time a military aircraft will be manufactured in India by a private company.
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According to the defence ministry, the project will be a shot in the arm for the aerospace ecosystem in India.
Several MSMEs across the country will be involved in the manufacturing of parts of the new transport aircraft.
The project is also expected to boost aviation manufacturing within the country leading to lower import dependence and increased exports.
It would also generate employment in the aerospace sector. it is anticipated that the deal could result in over 600 highly skilled jobs being created directly besides over 3000 medium skill employment opportunities and an additional 3000 indirect jobs.
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