This is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
Prime Minister Narendra Modi-led Cabinet Committee on Security has given its approval to the much-awaited procurement of 56 military transport aircraft for the Indian Air Force.
Deal for C-295MW transport aircraft from M/s Airbus Defence and Space S.A., Spain will be inked for Rs. 15,000 crore.
The Request For Proposal (RFP) was issued to global firms in May 2013.
According to defence officials, the deal was first approved by the Defence Acquisition Council in May 2015, but was stalled for years.
Defence officials claimed that 16 of such aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract and and remaining 40 aircraft will be manufactured in India by TATA Consortium within ten years of signing of the contract.
C-295MW aircraft is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the aging Avro aircraft of IAF.
Powered by the Pratt & Whitney PW127 engines, C-295MW aircraft has a rear ramp door for quick reaction and para dropping of troops and cargo.
All 56 aircraft will be installed with indigenous Electronic Warfare Suite.
According to a senior defence ministry official, this is the first project of its kind in which a military aircraft will be manufactured in India by a private company. "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," the MoD official said.
It is expected to generate 600 highly skilled jobs directly, over 3,000 indirect jobs and an additional 3,000 medium skill employment opportunities with more than 42.5 lakh man hours of work.
