India on September 24 signed a landmark $2.8 billion contract with Airbus Defence & Space, Spain for the acquisition of 56 C295MW military transport aircraft for the Indian Air Force (IAF). This contract clears the decks for the manufacture of aircraft by the Indian private sector for the first time, ending the long-running monopoly of the public sector behemoth, Hindustan Aeronautics Limited (HAL).

This will be the first full spectrum ‘Make in India’ aerospace programme in the private sector involving development of a complete industrial ecosystem from manufacture to assembly, test and qualification to delivery and maintenance over the complete lifecycle of the aircraft.

The first lot of 16 aircraft will be delivered in a fly-away condition from the Airbus assembly line in Seville, Spain within four years. Airbus has partnered an Indian consortium led by Tata Advanced Systems Limited (TASL) to manufacture and assemble the subsequent lot of 40 aircraft in India. All 56 aircraft are to be delivered to the IAF in 10 years

Under this Buy and Make (Global) contract, the first lot of 16 aircraft will be delivered in a fly-away condition from the Airbus assembly line in Seville, Spain within four years. Airbus has partnered an Indian consortium led by Tata Advanced Systems Limited (TASL) to manufacture and assemble the subsequent lot of 40 aircraft in India. All 56 aircraft are to be delivered to the IAF in 10 years in a deal which is expected to contribute significantly to India’s military aerospace ecosystem. The aircraft will be equipped with an electronic warfare suit developed indigenously in India.

A contract for acquisition of 56 C-295 MW transport ac for #IAF was signed today between the Ministry of Defence (MoD) & M/s Airbus Defence and Space, Spain. Induction of the aircraft will be another step towards modernisation of the tpt fleet of IAF. pic.twitter.com/uThF3bAI43

— Indian Air Force (@IAF_MCC) September 24, 2021

The C295MW will replace the ageing and obsolete Avro-748 fleet of the IAF. It is a tactical airlifter in the 5-to-10-ton category which can land on short or unprepared airstrips. It has a proven capacity to airlift up to 71 troops or 50 paratroopers and carry logistical loads to locations that are not accessible to heavier aircraft. The C295MW can perform special missions as well as disaster relief and maritime patrol duties and carry out medical evacuations.

With this contract, the IAF will become the 35th C295 operator worldwide. As many as 278 of these aircraft have been ordered, of which 200 are already in operation and have logged more than half a million flight-hours.

India’s Ministry of Defence also signed a concurrent offsets contract which obligates Airbus Defence & Space to source equipment and systems worth 30 per cent of the value of the C295MW contract from Indian partners. These contracts were signed following a go-ahead by India’s Cabinet Committee on Security headed by Prime Minister Narendra Modi earlier this month.

The Ministry of Defence hailed this long-pending deal as a big step towards the modernisation of the IAF’s transport fleet and a boost to Indian industry which gets an opportunity to plug into a global aerospace ecosystem.

“The aircraft will give a major boost to tactical airlift capability of IAF, especially in the Northern and North-Eastern sector and Andaman & Nicobar Islands,” according to a statement issued by the Ministry of Defence.

India’s Ministry of Defence also signed a concurrent offsets contract which obligates Airbus Defence & Space to source equipment and systems worth 30 per cent of the value of the C295MW contract from Indian partners. These contracts were signed following a go-ahead by India’s Cabinet Committee on Security headed by Prime Minister Narendra Modi earlier this month

“After completion of the delivery, the subsequent aircraft manufactured in India can be exported to countries which are cleared by the Government of India,” the Ministry of Defence stated.

CEO of Airbus Defence and Space Michael Schoellhorn said the Indian contract will enlarge the footprint of the C295 both operationally as well as industrially. “This contract will support the further development of India’s aerospace ecosystem, bringing investment and 15,000 skilled direct jobs and 10,000 indirect positions over the coming 10 years,” he said in a statement.

“After completion of the delivery, the subsequent aircraft manufactured in India can be exported to countries which are cleared by the Government of India,” the Ministry of Defence stated.

Managing Director and Chief Executive Officer of Tata Advanced Systems Limited Sukaran Singh termed the deal as a big moment for the Make in India agenda. “This is a moment of pride for Tatas and a milestone for the Indian military manufacturing ecosystem. For the first time, an Indian private company will be wholly manufacturing an aircraft in India. This endeavour demonstrates Tata Advanced Systems’ capabilities as a defence manufacturer to build globally competitive complex platforms in India."

“The C295MW programme will see Airbus bring its complete bouquet of world-class aircraft manufacturing and servicing to India in collaboration with our industrial partners, including the Tatas and leading defence public sector units such as Bharat Electronics Ltd. and Bharat Dynamics Ltd, apart from private Micro, Small and Medium Enterprises,” a joint statement issued by Airbus and TASL added.