New Delhi : The Defence Ministry on Friday signed a contract with Airbus Defence and Space, Spain, for procurement of fifty six C-295 medium transport aircraft to replace the aging Avro-748 planes of the Indian Air Force.
The deal is estimated to be worth around Rs 22,000 Crore.
According to officials, under the contract 16 aircrafts will be delivered in a flyaway condition by the Airbus within 48 months of signing the contract.
The remaining 40 planes will be manufactured in India by a consortium of the Airbus Defence and Space and Tata Advanced Systems Limited (TASL) in a period of 10 years.
The procurement was approved by the Cabinet Committee on Security on September 8.
A government statement issued after the deal was cleared said this is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
All fifty six aircrafts will be installed with indigenous Electronic Warfare Suite.
Government officials have 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 is also aimed at boosting the `Atmanirbhar Bharat Abhiyan’ of the Government and will provide a unique opportunity for the Indian private sector to enter into technology intensive and highly competitive aviation industry.