The Union defence ministry on Friday announced that it has signed a ₹22,000 crore contract with Airbus Defence and Space for 56 C-295 medium transport aircraft to modernise the India Air Force’s transport fleet, with the development coming a fortnight after India’s Cabinet Committee on Security (CCS) cleared the purchase to give push to the Atmanirbhar Bharat Abhiyan (self-reliant India campaign).
The C-295s will replace the IAF’s fleet of ageing Avro-748 planes that entered service in the early 1960s. Airbus Defence and Space and Tata Advanced Systems Limited (TASL) will jointly execute the programme under which Airbus will deliver the first 16 aircraft in flyaway condition from Spain while TASL will assemble the rest in India. IAF will become the 35th C-295 operator worldwide.
“The aircraft is capable of operating from semi-prepared strips and has a rear ramp door for quick reaction and para-dropping of troops and cargo. It will give a major boost to the tactical airlift capability of IAF, especially in the northern and north-eastern sectors and the Andaman and Nicobar Islands,” the defence ministry said in a statement.
The C-295 can carry up to nine tonne of payload or 71 personnel (or 50 paratroopers) and has a maximum speed of 480 kmph. It has a light footprint and can operate from short or unprepared airstrips.
{{/usCountry}}The C-295 can carry up to nine tonne of payload or 71 personnel (or 50 paratroopers) and has a maximum speed of 480 kmph. It has a light footprint and can operate from short or unprepared airstrips.
{{/usCountry}}The Avro replacement project was in the works for almost a decade. The defence acquisition council -- India’s apex defence procurement body -- accorded its acceptance of necessity (AoN) to replace the Avro planes with 56 new aircraft in 2012. Under India’s defence procurement rules, AoN by the council is the first step towards buying military hardware.
“The C-295 is a good aircraft. I hope we start manufacturing it in India soon to boost Atmanirbhar Bharat. The Avro was overdue for replacement,” said former IAF chief Air Chief Marshal PV Naik (retd).
The first 16 aircraft will be delivered to IAF in flyaway condition between September 2023 and September 2025, and the remaining 40 will be inducted by September 2031.
Airbus Defence and Space and TASL are yet to announce where the aircraft will be assembled in India.
“More than 100 locations across the country have been looked at and evaluated over the years. We have looked at aspects such as length of the airstrip, availability of infrastructure, social indicators and weather. A decision has not yet been made,” TASL CEO Sukaran Singh said at a media briefing after the contract was signed.
The final assembly line in India will have a capacity of 12 aircraft per year. After the contract has been fully executed, subsequent aircraft manufactured in India can be exported to countries cleared by the government, the defence ministry said in its statement.
Export opportunities could be there, but the current priority is to execute the project to the satisfaction of IAF, said Jean-Brice Dumont, executive vice president, military aircraft, Airbus Defence and Space. “Export potential is there, but we don’t want to divert attention from this project (for 56 C-295s),” Dumont said. The project is expected to boost India’s aerospace ecosystem and generate 15,000 skilled and 10,000 indirect jobs in the country.
“It is the first ‘Make in India’ aerospace programme in the private sector involving the full development of a complete industrial ecosystem; from the manufacture to assembly, test and qualification, to delivery and maintenance of the complete life cycle of the aircraft,” Airbus Defence and Space and TASL said in a joint release.
This is the first time that an Indian private company will be manufacturing a military aircraft in India. “This endeavour demonstrates TASL’s capabilities as a defence manufacturer to build globally competitive complex platforms in India,” Singh said.
While the C-295s are meant to replace the Avro-748 planes, the new aircraft will also be suitable for demanding roles that the AN-32 currently undertakes.
The contract will also have an offset clause. India’s offset policy stipulates that in all big-ticket capital purchases, the foreign vendor has to invest at least 30% of the value of the purchase in the country to boost indigenous capabilities. Airbus Defence and Space will discharge its offset obligations through direct purchase of eligible products and services from Indian offset partners, officials said.
“The clearance of the joint project between Airbus Defence and Tata Advanced Systems is a great step forward in the opening up of aviation and avionics projects in India…It will create a domestic supply chain capability to international standards, which has never been undertaken before,” Tata Sons chairman emeritus Ratan Tata said in a statement.