C-295 Deal: Defense Ministry
spokesperson A Bharat Bhushan Babu tweeted, 'A contract has been signed
between the Ministry of Defense and Airbus Defense and Space of Spain for the
purchase of 56 'C-295' conveyor aircraft for the Indian Air Force.
The Defense Ministry on Friday signed a contract worth about Rs 20,000 crore
with Airbus Defense and Space of Spain for the purchase of 56 'C-295' medium
transport aircraft. These aircraft will displace the Avro-748 aircraft of the
Indian Air Force. A Cabinet committee on security had approved the
long-pending deal two weeks ago.
Defense Ministry spokesperson A Bharat Bhushan Babu tweeted, "Contract signed
between Ministry of Defense and Airbus Defense & Space of Spain for
procurement of 56 'C-295' transport aircraft for Indian Air Force." Within 48
months of the signing, Airbus Defense and Space will hand over 16 aircraft
capable of flying. The outlasting 40 aircraft will be built in India.
These will be built within 10 years of the signing of the deal by a consortium
of Airbus Fidelity and Space and Tata Advanced Systems Limited (TASL). The
'C-295' MW aircraft is a transport aircraft of 5-10 tonnes capacity. This is
the first project of its kind in which military aircraft will be manufactured
in India by a private company.
"All 56 aircraft will be provided with indigenously improved electronic
warfare systems," the ministry had said on September 8, after the Cabinet
committee confirmed the purchase. It sold in-principle approval to displace
the Avro nearly nine years ago. The ministry had said that a replacement
center for the C-295MW aircraft is to be set up in India before the supply of
the aircraft is developed.
Ratan Tata congratulated
Industrialist Ratan Tata has expressed happiness over this decision. He has
congratulated Airbus Defence, Tata Advanced Systems Limited, and the Ministry
of Defense of India through a tweet. He wrote, 'The approval of the joint
project between Airbus Defense and Tata Advanced Systems to build the C-295 is
a major step at the beginning of aviation and avionics projects in India.' has
also been told.
A detailed description of the C-295 aircraft deal
Why in the discussion?
The Committee on Security Affairs (CCS) has approved the procurement of 56
C-295 MW (56 C-295 MW) medium transport aircraft for the Indian Air Force
as part of the Make-in-India initiative in the aerospace sector.
The 56 C-295MW aircraft will be procured from Airbus Defense and Space
S.A., Spain.
Key points - About 56C-295MW:
Capacity:
-
The 56C-295MW is a 5-10 tonne transport aircraft with contemporary
technology.
Features:
-
It has a rear ramp door for faster response and para dropping of troops
and cargo.
-
It will be installed along with the indigenous Electronic Warfare Suite.
Replacement:
-
It will replace the old fleet of Avro-748 aircraft of the Indian Air
Force.
-
The Avro-748 aircraft is a British-origin twin-engine turboprop,
military transport, and cargo aircraft with a cargo capacity of 6
tonnes.
Project Implementation:
Airbus Defense and Space and Tata Advanced Systems Limited (TASL) are
jointly executing a project to equip the Air Force with new transport
aircraft as part of the Make-in-India initiative in the aerospace sector
will do.
Airbus will provide the first 16 aircraft in in-flight state, while the left
40 will be assembled in India by TASL.
Significance of the deal:
Private Sector Participation: Private Sector Participation: This is the initial project of its
brand in which a military aircraft will be assembled in India by a private
company.
It is expected that all Tata consortium suppliers that will be involved in
specialized processes during the manufacturing process in India will achieve
and maintain the globally recognized National Aerospace and Defense Contract
Accreditation Program (NADCAP) accreditation.
Boost to Self-reliant India Campaign: It provides a unique opportunity for the Indian private sector to
enter the technology-intensive and highly competitive aviation industry.
This program is a unique initiative to strengthen indigenous capabilities
and promote 'Make in India'.
Promotion of MSMEs: The project
will boost the aerospace ecosystem in India in which several Micro, Small
and Medium Enterprises (MSMEs) spread across the country will be involved in
manufacturing parts of aircraft.
Reduce Dependence on Imports: The project will give a boost to domestic aviation manufacturing resulting
in less dependence on imports and expected growth in exports.
A huge amount of components, sub-machines, and important part assembly units
of aerostructures are to be built in India.
Employment Generation: This deal will work as a catalyst for employment generation in the
country's aerospace ecosystem.
This is expected to create 600 highly skilled jobs directly, over 3000
indirect jobs, and over 42.5 lakh man-hours in India's aerospace and defense
sector.
Infrastructure Development: This would include the development of specialized infrastructure in the
form of hangars, buildings, aprons, and taxiways.
There are plans to set up a 'D' Level Servicing Facility (MRO) for the
'C-295 MW' aircraft in India before the completion of the delivery.
It is supposed that the bureau will act as a regional MRO (Maintenance,
Repair, and Overhaul) hub for various variants of the 'C-295' aircraft.
Offset obligations: Airbus will release its offset obligations through the direct
purchase of available goods and services from Indian offset partners,
thereby contributing a moreover boost to the economy.
In simple words, 'Offset Liability' means the obligation of international
companies to promote India's domestic defense industry, if India is buying
defense equipment from it.
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