To replace Avro-748 planes, India to ink $2.5-billion deal for 56 transport aircraft for IAF

New Delhi, Jan 6: In order to replace the ageing Avro-748 planes, India will be finalising a mega deal to procure 56 C-295 transport aircraft for the Indian Air Force at a cost of $2.5 billion in the next few months. This project will be implemented by aerospace giant Airbus Defence and Space and Tata Advanced Systems Limited (TASL) along with an Indian entity to strengthen the Make in India initiative in the defence sector.

 

 

As per decisions, 16 C-295 transport aircraft will be supplied by the Airbus in flyaway condition and the remaining 40 planes will be manufactured in India. The procurement process for the aircraft has almost been completed and a final decision on the deal is likely to be made soon.

 

"Case of procurement of 56 C-295 from M/s Airbus with the participation of an Indian Production Agency for the manufacture of 40 aircraft (out of total 56) in India is also at CFA approval stage and contract is likely to be signed in the near future. The case is first of its kind which envisages participation of private companies and would prove to be a boost for our defence industry," the defence ministry said in a report. The government is procuring the aircraft to replace the IAF's Avro planes.

 

The defence ministry has been giving final touches to a number of long-pending procurement projects to boost India's overall military capability. Last month, the defence ministry approved procurement of weapons and military equipment worth Rs 28,000 crore, including six airborne warning and control system aircraft, for the Indian Air Force.

 

The contract for buying 83 LCA Mk 1A aircraft for the IAF from Hindustan Aeronautics Limited (HAL) is also likely to be signed soon after approval by the Cabinet Committee on Security, the ministry said its review. Last March, the defence ministry nodded to the purchase of 83 advanced Tejas jets from HAL. The deal is expected to be worth Rs 38,000 crore. The deal for the 83 Mk-1A jets will take the total number of Tejas variants ordered to 123.