India formalizes the purchase of 56 Airbus C295 aircraft

After 15 days since the Government of India authorized the purchase of 56 C295, today the Ministry of Defense signed the formal order with Airbus Defense & Space and Tata Advanced Systems Limited (TASL) for the purchase of the aircraft, for a total contractual value of approximately U$S 2.5 billion.

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Under the terms of the contract, Airbus will deliver the first 16 aircraft in flying condition from its final assembly line in Seville, Spain. India’s Tata Advanced Systems (TASL) will manufacture and assemble the remaining 40 aircraft through an industrial alliance between the two companies.

This is the first «Make in India» aerospace program in the private sector and involves the development of an entire industrial ecosystem: from manufacturing, assembly, testing and qualification to delivery, as well as maintenance throughout the life cycle of the aircraft.

The MoD also signed an Offset Contract with Airbus Defence and Space through which Airbus will fulfill its offset obligations through the direct purchase of eligible products and services from Indian offset partners. As we reported at the time, these contracts were signed following approval granted by the Cabinet Committee on Security earlier this month.

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The first 16 aircraft will be delivered over four years following contract entry into force. All Indian Air Force (IAF) C295s will be delivered in transport configuration and will be equipped with an Indian-developed electronic warfare package. Delivery of all aircraft should be completed after a period of 10 years.

«This contract will boost the development of India’s aerospace ecosystem, generate investment and, over the next ten years, lead to the creation of 15,000 highly skilled direct jobs and 10,000 indirect jobs,» said Michael Schoellhorn, CEO of Airbus Defence and Space. «The C295 has once again demonstrated that it is the segment leader. With the addition of India as a new operator, this aircraft will further expand its presence, not only in its operational side, but also in its industrial and technological development», he added.

Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems Limited, said, «The contract is a matter of pride for Tata and a milestone for the Indian military manufacturing ecosystem. For the first time, a private Indian company will manufacture an aircraft entirely in the country. This initiative demonstrates Tata Advanced Systems’ capability as a defense equipment manufacturer to build complex platforms in India that can compete globally».

The introduction of the C-295MW will be an important step towards the modernization of the Indian Air Force (IAF) transport fleet. It is a transport aircraft in the 5-10 ton capacity category with modern technology, which will replace the IAF’s aging Avro-748 transport aircraft.

The aircraft is capable of operating from semi-prepared runways and has a rear ramp door for troop and cargo drops. The C295 will give a major boost to the IAF’s tactical airlift capability, especially in the northern and northeastern sector (from high altitude air bases) and in the Andaman and Nicobar Islands.