The Cabinet Committee on Security on Wednesday approved procurement of 56 C-295MW transport aircraft for Indian Air Force from Airbus Defence and Space, a Spain-based private company.
This is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
Of 56, 16 aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract while the remaining 40 will be manufactured in India by TATA consortium within ten years of the deal.
All 56 aircraft will be installed with indigenous electronic warfare suite, the Central government said in an official release.
The military transport aircraft of 5-10 tonne capacity with contemporary technology will replace the ageing Avro aircraft of IAF. The C-295MW has a rear ramp door for quick reaction and para dropping of troops and cargo.
The programme will act as a catalyst in employment generation in 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, the government said.
The project will give a boost to aerospace ecosystem in India wherein several MSMEs spread over the country will be involved in manufacturing of parts of the aircraft, it added.
A large number of detail parts, sub-assemblies and major component assemblies of aero structure are scheduled to be manufactured in India.
“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 release said.
The project will augment domestic aviation manufacturing resulting in reduced import dependence and expected increase in exports, according to the Centre.
“This programme is a unique initiative of Government of India to strengthen indigenous capabilities and boost ‘Make in India’,” it added.