India to buy 56 C-295MW transport aircraft from Airbus Defence for IAF
India will procure 16 aircraft in readymade condition while the remaining 40 would be made in India in an effort to strengthen the indigenous capabilities.
In a move to replace the ageing Avro transport aircraft, the Cabinet Committee on Security has approved the procurement of 56 C-295MW transport aircraft from Spain-based Airbus Defence and Space for the Indian Air Force.
Among them, India will procure 16 aircraft in readymade condition while the remaining 40 would be made in India in an effort to strengthen the indigenous capabilities.
The cost of the deal has not yet been revealed.
"All aircraft will be installed with indigenous Electronic Warfare Suite," the defence ministry said.
The 16 fly-away condition aircraft will be delivered within 48 months from the day of contract signing while the remaining will be built by a TATA-led consortium within 10 years of the deal signing.
This is the first time a military aircraft will be manufactured in India by a private company.
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.