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Tatas to Manufacture 40 Aircraft under ₹20,000 Cr Govt Deal with Airbus for 56 C-295 MW Aircraft

Airbus logo

The Indian Ministry of Defence (MoD) has signed a deal with Airbus Defence and Space S.A., Spain on 24th September for acquisition of 56 C-295 MW transport aircraft for nearly ₹ 22,000 crore.

The 56 C-295 MW transport aircraft will be replacing British built Avro-748 planes of the Indian Air Force that were procured in the 1960s.

Airbus has partnered with Tata Advanced Systems Ltd (TASL) for developing C-295 MW.

Details of the Deal Signed by Ministry of Defence for C-295 MW

This will be the first ‘Make in India’ aerospace programme in the Indian private sector, involving the full development of the aircraft from manufacturing to assembly, test and qualification, to delivery and maintenance of the complete life-cycle of the aircraft.

Airbus and Indian Ministry of Defence Signing MoU

As per the industrial partnership between Tata Advanced Systems Ltd. and Airbus, 16 aircraft will be delivered in a flyaway condition by Airbus from its assembly line in Seville, Spain and remaining 40 aircraft will be manufactured and assembled by Tata Advanced Systems Ltd in India.

At present, location of the manufacturing facility in India has not been decided by TASL.

The first aircraft would be delivered to Indian Air Force by Airbus in two years and the delivery of remaining 15 aircraft in flyaway condition shall be completed within four years. The remaining 40 aircraft will be supplied within 10 years by Tata Advanced Systems Ltd.

C-295 MW manufacturing in India is expected to create 15,000 direct jobs and 10,000 indirect jobs over the coming 10 years. Also, this deal aims to give a boost to Indian private sector in defence manufacturing.

The Indian Defence Ministry said “The aircraft will give a major boost to the tactical airlift capability of the IAF, especially in the northern and northeastern sectors and the Andaman and Nicobar Islands”, as mentioned in Hindu dated 24th September 2021.

Tata Advanced Systems logo

Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems Ltd., said “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,” as mentioned in the press release of Tata Advance Systems dated 24th September 2021.

About Airbus: Airbus is one of the European leaders in defence and security and also one of the World’s leading aerospace businesses. Airbus provides efficient and technologically advanced solutions in aerospace, defence and connected services. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions and services worldwide.

About Tata Advance Systems Limited: Tata Advanced Systems Limited is a wholly-owned subsidiary of Tata Sons. It is focused on providing integrated solutions for Aerospace, Defence and Homeland Security. Tata Advanced Systems Limited has capabilities from design to full assembly of aircraft and weapon systems and is well-positioned in areas that include missiles, radars, unmanned aerial systems, command and control systems, optronics and homeland security.