The Indian Government’s Cabinet Committee on Security (CCS) has recently approved the acquisition of 56 C-295 MW medium transport aircraft for the Indian Air Force under the Make-in-India initiative in the aerospace sector. Spain’s Airbus Defence and Space S.A. will supply these aircraft.
About C-295 MW Aircraft
The C-295 MW aircraft is a modern, medium transport variant with a payload capacity between 5 to 10 tonnes. Unique features of this aircraft include a rear ramp door that facilitates swift reaction and para-dropping of troops and cargo. Additionally, it will be outfitted with an indigenous Electronic Warfare Suite.
Replacing the Avro-748 Planes
The C-295MW aircraft will replace the Indian Air Force’s ageing fleet of Avro-748 planes. The Avro-748, a British-origin twin-engine turboprop, serves as a military transport and freighter with a 6-tonne freight capacity.
Project Execution
Airbus Defence and Space and Tata Advanced Systems Limited (TASL) will jointly execute this project. The first 16 aircraft, provided by Airbus, will arrive in a ‘fly-away’ condition, while TASL will assemble the remaining 40 aircraft in India.
Significance of the Deal
Engagement of the Private Sector
This project marks the first time a military aircraft will be manufactured in India by a private company. As a result, all TATA Consortium suppliers involved in manufacturing are expected to gain and retain the globally recognized National Aerospace and Defence Contractors Accreditation Program (NADCAP) accreditation.
Fostering Self-Reliance
The project aligns with the Atmanirbhar Bharat Abhiyan by providing a unique opportunity for India’s private sector to venture into the technology-driven, highly competitive aviation industry. It further strengthens indigenous capabilities and promotes the Make in India initiative.
Boost for MSMEs
The aerospace ecosystem in India is set to get a significant boost from this project, with several Micro, Small, and Medium Enterprises (MSMEs) anticipated to manufacture parts of the aircraft across the country.
Reducing Import Dependence
The project promises an augmentation of domestic aviation manufacturing, leading to a reduction in import dependence and a potential increase in exports. A wide range of detail parts, sub-assemblies and major component assemblies of aero structure are scheduled to be manufactured within India.
Employment Generation
This programme is projected to generate 600 highly-skilled jobs directly, over 3000 indirect jobs, and an additional 3000 medium-skill employment opportunities, entailing more than 42.5 lakh man-hours of work within India’s aerospace and defence sector.
Infrastructure Development
The project includes developing specialized infrastructure such as hangars, buildings, aprons, and taxiways. Before completion of deliveries, a ‘D’ Level servicing facility (Maintenance, Repair and Overhaul or MRO) for C-295MW aircraft is planned to be set up in India. This facility is likely to serve as a regional MRO hub for C-295 variants.
Offset Obligations
Airbus has committed to discharging its offset obligations through the direct purchase of eligible products and services from Indian offset partners, providing an additional economic stimulus.
