Tata, Airbus sign Rs 20,000 crore deal to make military aircraft in India

New Delhi: The Defence Ministry and Airbus Defence and Space of Spain, on Friday (September 24), signed a contract worth around Rs 20,000 to procure 56 C-295 medium transport aircraft. 

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

Defence Ministry and Airbus Defence and Space, Spain today signed a contract for procurement of 56 C-295 aircraft for the Indian Air Force: Defence Ministry pic.twitter.com/Yb3jKcKy5c — ANI (@ANI) September 24, 2021

Under the deal, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain, the plane manufacturer said. 

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

Tata Trusts Chairman Ratan Tata said that the clearance of the joint project between Airbus Defence 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,” he added.  

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 international standards which has never been undertaken before. Also Read: China Evergrande crisis: Real estate firm closer to potential default after missing interest deadline

“The Tata Group congratulates Airbus and the Indian Defence Ministry for this bold step in fully building this state-of-the-art multi-role aircraft in India,” Tata said, adding that deal will support Prime Minister Narendra Modi’s flagship ‘Make In India’ scheme. Also Read: Apple Store exchange offers: iPhone 13 selling for Rs 34,000, check how much you can save by trading old phones