Cabinet approves procurement of 56 C-295MW Transport Aircraft

New Delhi

Key Highlights:

# 16 aircraft to be delivered in flyaway condition from Spain; 40 to be manufactured in India by TATA consortium

# Unique initiative to strengthen indigenous capabilities & boost ‘Make in India’

# All aircraft to be installed with indigenous Electronic Warfare Suite

# To replace the aging Avro aircraft of IAF

# Transport aircraft of 5-10 Tonne capacity with contemporary technology

Today, Cabinet Committee on Security approved the procurement of fifty-six C-295MW transport aircraft from M/s Airbus Defence and Space S.A., Spain for the Indian Air Force. C-295MW aircraft is a transport aircraft of 5-10 Tonne capacity with contemporary technology that will replace the aging Avro aircraft of IAF. The aircraft has a rear ramp door for quick reaction and para dropping of troops and cargo.

Sixteen aircraft will be delivered in flyaway condition from Spain within 48 months of the signing of the contract and forty aircraft will be manufactured in India by TATA Consortium within ten years of the signing of the contract. This is the first project of its kind in which a military aircraft will be manufactured in India by a private company. All fifty-six aircraft will be installed with the 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 the manufacturing of parts of the aircraft.

The program will provide a major boost to the `Atmanirbhar Bharat Abhiyan’ of the Government as it offers a unique opportunity for the Indian Private Sector to enter into a technology-intensive and highly competitive aviation Industry. The project will augment domestic aviation manufacturing resulting in reduced import dependence and an expected increase in exports.

A large number of detail parts, sub-assemblies, and major component assemblies of aerostructure are scheduled to be manufactured in India. The program will act as a catalyst in employment generation in the aerospace ecosystem of the country and is expected to generate 600 highly skilled jobs directly, over 3000 indirect jobs, and an additional 3000 medium skill employment opportunities with more than 42.5 lakh man-hours of work within the aerospace and defence sector of India. It will involve the development of specialized infrastructure in form of hangars, buildings, aprons, and taxiways.  During the process of manufacturing in India, it is expected that all the suppliers of TATA Consortium who will be involved in special processes will gain and maintain globally recognized National Aerospace and Defence Contractors Accreditation Program (NADCAP) accreditation.

Before completion of deliveries, ‘D’ Level servicing facility (MRO) for C-295MW aircraft is 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.  

In addition, the OEM will also discharge its offset obligations through direct purchase of eligible products and Services from Indian Offset Partners giving a further boost to the economy.

This program is a unique initiative of the Government of India to strengthen indigenous capabilities and boost ‘Make in India’.

On Date: 
Wednesday, September 8, 2021
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