The Cabinet Committee on Security (CCS) on Wednesday approved the procurement of 56 C-295 MW transport aircraft for the Indian Air Force to replace its ageing Avro planes which were first inducted around 60 years ago.
Sixteen aircraft will be delivered in flyaway condition from Spain within 48 months of the signing of the contract and 40 aircraft will be manufactured in India by TATA Consortium within 10 years, the government said in a release.
This is the first project of its kind in which a military aircraft will be manufactured in India by a private company, it said, adding that all 56 aircraft will be installed with an indigenous electronic warfare suite.
The programme will act as a catalyst in employment generation in aerospace ecosystem of India and is expected to generate 600 highly skilled jobs directly, over 3000 indirect jobs & an additional 3000 medium skill employment opportunities, the government said.
The cost of the procurement is expected to be in the range of Rs 18,000 to Rs 20,000 crore, people familiar with the project said. A large number of detail parts, sub-assemblies and major component assemblies of aero structure are scheduled to be manufactured in India.
The in-principle approval for the Avro replacement programme was accorded around nine years ago.