The Cabinet Committee on Security (CCS) on Wednesday cleared the acquisition of 56 C-295MW medium transport aircraft from Airbus Defence and Space, Spain, in a deal worth $2.5 billion (Rs 22,000 crore).
The acquisition will be done under the ‘Buy & Make’ category of the Defence Procurement Procedure.
Sixteen aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract and 40 aircraft will be manufactured in India by Tata consortium within ten years of signing of the contract, the defence ministry said.
This is the first project of its kind in which a military aircraft will be manufactured in India by a private company. All 56 aircraft will be installed with indigenous Electronic Warfare Suite. The project will give a boost to the aerospace ecosystem in India wherein several MSMEs spread over the country will be involved in manufacturing parts of the aircraft, the defence ministry statement said.
C-295MW is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the ageing Avro aircraft of the IAF, the government said, adding that it has a rear ramp door for quick reaction and para-dropping of troops and cargo.
The Defence Ministry called it a “unique initiative to strengthen indigenous capabilities”. The fleet will replace the Avro aircraft of the Air Force, which are British-origin twin-engine turboprop, military transport and freighter with a 6-tonne freight capacity. It was inducted into the Indian Air Force in the early 1960s.
The programme will provide major boost to the `Atmanirbhar Bharat Abhiyan’ of the Government as it offers a unique opportunity for the Indian Private Sector to enter into technology intensive and highly competitive aviation Industry. The project will augment domestic aviation manufacturing resulting in reduced import dependence and expected increase in exports.
Before completion of deliveries, ‘D’ Level servicing facility (MRO) for C-295MW aircraft are scheduled to be set up in India. It is expected that this facility will act as a regional MRO hub for various variants of C-295 aircraft.
