Defense Ministry signs 22,000 yen deal with Airbus for 56 C-295 medium transport aircraft | Latest India News
New Delhi: The Union Defense Ministry announced on Friday that it had signed a ??22,000 crore contract with Airbus Defense and Space for 56 C-295 medium transport aircraft to modernize the India Air Force transport fleet, with development taking place two weeks after the Indian Cabinet Committee on Security ( CCS) authorized the purchase to boost the Atmanirbhar Bharat Abhiyan (Indian independence campaign).
The C-295s will replace the IAF’s aging Avro-748 aircraft fleet that entered service in the early 1960s. Airbus Defense and Space and Tata Advanced Systems Limited (TASL) will jointly execute the program under which Airbus will deliver the aircraft. First 16 aircrafts from Spain while TASL will assemble the rest in India. IAF will become the 35th C-295 operator in the world.
“The aircraft is capable of operating from semi-prepared strips and has a rear ramp door for rapid reaction and parachuting of troops and cargo. This will give a major boost to the IAF’s tactical airlift capability, particularly in the northern and northeastern sectors and the Andaman and Nicobar Islands, ”the defense ministry said in a statement.
The C-295 can carry up to nine tonnes of payload or 71 people (or 50 paratroopers) and has a top speed of 480 km / h. It has a light footprint and can operate from short or unprepared airstrips.
The Avro replacement project had been in the works for nearly a decade. The Defense Acquisition Board – the Indian Defense Procurement Agency – has granted its Acceptance of Necessity (AoN) to replace Avro aircraft with 56 new aircraft in 2012. Under Indian procurement rules In defense, AoN by the board is the first step towards the purchase of military equipment.
“The C-295 is a good plane. Hope we will start making it in India soon to boost Atmanirbhar Bharat. The Avro was late for replacement, ”said former IAF chief Air Marshal PV Naik (retired).
The first 16 aircraft will be delivered to the IAF in flight condition between September 2023 and September 2025, and the remaining 40 will be inducted by September 2031.
Airbus Defense and Space and TASL have yet to announce where the aircraft will be assembled in India.
“Over 100 locations across the country have been reviewed and evaluated over the years. We looked at aspects such as the length of the airstrip, the availability of infrastructure, social indicators and the weather. A decision has yet to be made, ”TASL CEO Sukaran Singh said at a press conference after the contract was signed.
The final assembly line in India will have a capacity of 12 devices per year. Once the contract is fully executed, subsequent planes made in India can be exported to countries authorized by the government, the Defense Ministry said in its statement.
Export opportunities may exist, but the current priority is to execute the project to the satisfaction of the IAF, said Jean-Brice Dumont, executive vice president, military aircraft, Airbus Defense and Space. “The export potential is there, but we don’t want to distract from this project (for 56 C-295),” Dumont said. The project is expected to boost India’s aerospace ecosystem and generate 15,000 skilled jobs and 10,000 indirect jobs in the country.
“This is the first ‘Make in India’ aerospace program in the private sector involving the full development of a complete industrial ecosystem; from manufacturing to assembly, testing and qualification, to delivery and maintenance of the full lifecycle of the aircraft, ”said Airbus Defense and Space and TASL in a joint statement.
It is the first time that a private Indian company will manufacture a military aircraft in India. “This effort demonstrates TASL’s capabilities as a defense manufacturer to build complex, globally competitive platforms in India,” Singh said.
While the C-295s are expected to replace the Avro-748s, the new aircraft will also suit the demanding roles that the AN-32 currently undertakes.
The contract will also include a compensation clause. India’s compensation policy states that in all expensive capital purchases, the foreign supplier must invest at least 30% of the purchase value in the country to build local capacity. Airbus Defense and Space will meet its compensation obligations through the direct purchase of eligible products and services from Indian compensation partners, officials said.
“The approval of the joint project between Airbus Defense and Tata Advanced Systems is a big step forward in opening aviation and avionics projects in India… It will create a national supply chain capacity to international standards, which has never been done before, ”Tata Sons President Emeritus Ratan Tata said in a statement.
