Tata Gets Biggest Private Sector Contract In Defence Sector: Rs 21,000 Crore Deal For Making Military Aircrafts
The defence ministry on Friday signed a contract with Airbus Defence and Space for the procurement of 56 C-295 transport aircraft for the Indian Air Force.
Ratan Tata, Chairman of Tata Trusts, congratulated Airbus Defence, Tata Advanced Systems Limited, and the Ministry of Defence on the historic contract signing.
Officials claim that the Tata-Airbus joint venture is the first project in which a private company will produce military aircraft in India!
Airbus-Tata Project Will Make Military Aircraft For The Indian Air Force
For the first time, an Indian private sector company will manufacture military aircraft, the long-pending Airbus-Tata project to build 56 C-295 transport aircraft, cost of over Rs 21,000 crore (around $3 billion).
The contract was signed two weeks after the Cabinet Committee on Security, led by Prime Minister Narendra Modi, approved it.
“Contract signed between the ministry of defence and Airbus defence and space, Spain for procurement of 56 C-295 transport aircraft for the IAF,”
Defence Ministry spokesperson Bharat Bhushan Babu said on Twitter.
Know How Airbus C-295 Will Be A True Made In India Deal!
The Airbus C-295 is a new-generation tactical airlift and intelligence, surveillance, and reconnaissance (ISR) aircraft with a wide range of capabilities.
According to the Ministry statement, the project would improve India’s aerospace ecosystem by involving various Micro, Small and Medium Enterprises (MSMEs) across the country in the manufacturing of aeroplane parts.
According to the statement, the programme will initiate job creation in India’s aerospace ecosystem, generating 600 highly skilled jobs directly, over 3,000 indirect jobs, and an additional 3,000 medium skill job opportunities with over 42.5 lakh man-hours of work in the aerospace and defence sector.
“It will create a domestic supply chain capability to international standards, which has never been undertaken before. The Tata Group congratulates Airbus and the Indian Defence Ministry for this bold step in fully building this state-of-the-art multi-role aircraft in India in support of the Make-in-India thrust to bolster the country’s equity framework,”
“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 of the signing of the contract,” Defence Ministry statement said.