Business Hour

Tata-Airbus sign ₹20,000 crore deal for military aircraft: Make in India

Airbus will deliver 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain.

The Defense Ministry and Airbus Defense along with Space of Spain, on September 24 signed a contract worth approximately Rs 20,000 crore to procure 56 C-295 medium transport aircraft.

The Cabinet Committee on Security had approved the procurement of planes two weeks back. The new aircraft will be replacing the outgoing Avro-748 planes which are in the possession of the Indian Air Force.

As per the plan manufacturer, under this deal, Airbus will deliver 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain.

After the delivery of 16 aircraft, Tata Advanced Systems will assemble & manufacture 40 aircraft in India as part of the industrial partnership between 2 companies.

Tata Trusts Chairman Ratan Tata said “Clearance of the joint project among Airbus Defense and Tata Advanced Systems to build the C-295 is a great step forward in the opening up of aviation and avionics projects in India. It envisages total manufacturing of the aircraft in India.”

C-295 is a multi-role aircraft that comes with several reconfigurations based on the missions it is required for. Tata added that the deal will create a domestic supply chain capability to match international standards which has never been undertaken before.

“The Tata Group congratulates Airbus and the Indian Defense Ministry for this bold step in fully building this state-of-the-art multi-role aircraft in India,” Tata said. This deal will support Prime Minister Narendra Modi’s flagship ‘Make in India’ scheme.

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 ministry had said on September 8 after the procurement was cleared by the Cabinet Committee on Security.

Did you know that in-principle approval for the Avro replacement programme was accorded around nine years back? The ministry says that, before completion of the deliveries, a servicing facility for C-295 MW aircraft is scheduled to be set up in India!


Also Read: Rs 99,122 Crore Surplus Will Be Transfered To The Government, Says RBI


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