Gujarat Exclusive > National-World > Defence ministry signs Rs 20,000 crore deal with Airbus for military aircraft

Defence ministry signs Rs 20,000 crore deal with Airbus for military aircraft

  • Airbus will supply first 16 aircraft from its final assembly line in Spain; rest to be made by Tata Advanced Systems in India

New Delhi: The Defence Ministry has signed a deal of nearly Rs 20,000 crore with Spain’s Airbus for C-295 medium transport aircraft. The ministry will procure 56 of these aircraft, which will replace the Avro-748 planes of the Indian Air Force.

The purchase had been cleared by the Cabinet Committee of Security about a fortnight ago.

This will be the first time that a private aircraft will be manufactured in India. The entire manufacturing ecosytem will be developed in the country, right from manufacture to assembly, test, qualification, delivery and maintenance of the aircraft.

As per the agreement, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain, over four years after the contract implementation. The remaining 40 will be manufactured and assembled by the Tata Advanced Systems (TASL) in India as part of an industrial partnership between the two companies.

The aircraft will be equipped with an indigenous Electronic Warfare Suite.

“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,” said Michael Schoellhorn, CEO of Airbus Defence and Space.

Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems Limited, 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.”

Defence Ministry spokesperson A Bharat Bhushan Babu tweeted, “Contract signed between #MinistryOfDefence and @AirbusDefence &Space, Spain for procurement of 56 C-295 transport aircraft for the #IAF.”


The c-295 is a multi-role aircraft with several configurations to meet mission requirements. It envisages total manufacturing of the aircraft in India.

Ratan Tata, on behalf of the Tata group, congratulated Airbus and the Defence Ministry for the “bold step in fully building this state-of-the-art multi-role aircraft in India in support to the ‘Make in India’ thrust”.




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