Indian Ministry of Defence has signed a contract with Airbus Defence and Space for acquisition of 56 C295MW transport aircraft for the Indian Air Force, on September 24, 2021. The MoD has also signed an Offset Contract with Airbus through which the OEM will discharge its offset obligations through direct purchase of eligible products and services from Indian Offset Partners. These contracts were signed following the approval accorded by the Cabinet Committee on Security earlier this month.
The induction of C295MW will be a significant step towards modernisation of the transport fleet of the Indian Air Force (IAF). It is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the ageing Avro transport aircraft of IAF. The project will provide a major boost to the 'Atmanirbhar Bharat Abhiyan' of the Government that offers a unique opportunity for the Indian private sector to enter into technology intensive and highly competitive aviation industry. Out of 56, forty aircraft will be manufactured in India by TATA Consortium. This will be the first time an Indian private sector company will manufacture a military aircraft, with the transfer of technology from the OEM, breaking the virtual monopoly of defence PSU Hindustan Aeronautics Ltd (HAL) in the field.