
A consortium led by Tata Group and Airbus will be manufacturing the C-295 transport aircraft for the Indian Air Force in Vadodara city of western Gujarat state, in a major boost to the Make in India policy.
Prime Minister Narendra Modi will lay the foundation stone for the manducating facility on Sunday.
Announcing the project, which is worth Rs 220 billion, the defence ministry on Thursday said that this is the first time that a military plane will be manufactured in India by a private company.
"For the first time, the C-295 aircraft will be manufactured outside of Europe,” Defence Secretary Ajay Kumar told reporters.
The conception of a manufacturing facility in Vadodara is the result of an agreement signed by India with Airbus Defence and Space to procure 56 C295 transport aircraft in a bid to replace the ageing Avro-748 planes for the IAF.
Under the deal, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain, within four years, while the subsequent 40 aircraft will be manufactured and assembled by Tata Advanced Systems (TASL) in India.
"The first 16 fly-away aircraft are scheduled to be received between September 2023 and August 2025. The first Made-in-India aircraft is expected in September 2026," Kumar said, speaking from Kerala through video conference.
He said that the plan’s components will be 96 per cent indigenous, barring the engine of the aircraft. "96 per cent of the work that Airbus does at its facility in Spain will be done in India."
Tata Consortium has identified more than 125 in-country MSME suppliers spread over seven states, Kumar said, adding that it will generate employment in the aerospace industry in the country.
The new facility is expected to generate 600 highly skilled jobs directly, over 3,000 indirect jobs and an additional 3,000 medium skill employment opportunities with more than 4 million man hours of work within the aerospace and defence sector, the defence ministry said.
Nearly 240 engineers will be trained at the Airbus facility in Spain for the project, it added.
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