C-295 Aircraft Deal

• 09 Sep 2021

Why in News

The Cabinet Committee on Security (CCS) has cleared procurement of 56 C-295 MW medium transport aircraft for the Indian Air Force under the Make-in-India initiative in the aerospace sector.

• The C-295MW aircraft will be purchased from Airbus Defence and Space S.A., Spain.

Key Points

• About:
  
  • Capacity:
    
    • The C-295 MW is a transport aircraft of 5-10 tonne capacity with contemporary technology.
  • Features:
    
    • It has a rear ramp door for quick reaction and para-dropping of troops and cargo.
    • It will be installed with the indigenous Electronic Warfare Suite.
  • Replacement:
    
    • It will replace the Indian Air Force’s ageing fleet of Avro-748 planes.
      
      • The Avro-748 planes are a British-origin twin-engine turboprop, military transport and freighter with a 6-tonne freight capacity.
  • Project Execution:
    
    • Airbus Defence and Space and Tata Advanced Systems Limited (TASL) will jointly execute the project to equip the air force with the new transport aircraft under the Make-in-India initiative in the aerospace sector.
      
      • Airbus will supply the first 16 aircraft in fly away condition while the remaining 40 will be assembled in India by TASL.
• Significance of the Deal:
  
  • Private Sector Participation: This is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
    
    • During the process of manufacturing in India, it is expected that all the suppliers of TATA Consortium who will be involved in special processes will gain and maintain globally recognized National Aerospace and Defence Contractors Accreditation Program (NADCAP) accreditation.
  • Boosts Atmanirbhar Bharat Abhiyan: It offers a unique opportunity for the Indian Private Sector to enter into technology intensive and highly competitive aviation Industry.
    
    • This programme is a unique initiative to strengthen indigenous capabilities and boost ‘Make in India’.
  • Boost MSMEs: The project will give a boost to the aerospace ecosystem in India wherein several Micro, Small and Medium Enterprises (MSMEs) spread over the country will be involved in manufacturing of parts of the aircraft.
  • Reduce Import Dependence: The project will augment domestic aviation manufacturing resulting in reduced import dependence and expected increase in exports.
    
    • A large number of detail parts, sub-assemblies and major component assemblies of aero structure are scheduled to be manufactured in India.
  • Employment Generation: The programme will act as a catalyst in employment generation in the aerospace ecosystem of the country.
    
    • It is expected to generate 600 highly skilled jobs directly, over 3000 indirect jobs and an additional 3000 medium skill employment opportunities with more than 42.5 lakh man hours of work within the aerospace and defence sector of India.
  • Infra Development: It will involve development of specialized infrastructure in the form of hangars, buildings, aprons and taxiways.
    
    • Before completion of deliveries, ‘D’ Level servicing facility (MRO) for C-295MW aircraft are scheduled to be set up in India.
    • It is expected that this facility will act as a regional MRO (Maintenance, Repair and Overhaul) hub for various variants of C-295 aircraft.
  • Offset Obligations: Airbus will discharge its offset obligations through direct purchase of eligible products and services from Indian offset partners giving further boost to the economy.
    
    • In simplest terms, the offset is an obligation by an international player to boost India’s domestic defence industry if India is buying defence equipment from it.

Note

• National Aerospace and Defense Contractors Accreditation Program (NADCAP) is a worldwide cooperative program of major companies designed to manage a cost-effective consensus approach to special processes and products and provide continual improvement within the aerospace and defense industries.

Source: PIB