Tata & Airbus sign Rs 22,000 crore deal to manufacture C-295 aircraft in Uttar Pradesh

In a boost to expand the aerospace ecosystem in India, Tata Group in partnership with Airbus will deliver 56 C-295 military aircraft to the Indian Air Force. On Thursday, Sept 23, Tata, Airbus has signed an Rs. 22,000 crore deal with the Centre to manufacture C-295 transport aircraft in India, Republic Media network has learned through its sources. Out of the total 56 aircraft, 40 will be manufactured locally in India, while 16 will be developed in Spain.

The Tata & Airbus manufacturing plant is likely to be set up in Uttar Pradesh to develop these military aircraft. The deal was proposed to boost the Make in India initiative launched by the central government.

Tata, Airbus strike deal to manufacture 40 C-295 military aircraft

This was one of the many initiatives taken by the Central government to promote the involvement of the private sector in defence manufacturing. Tata, Airbus will be manufacturing 40 C-295 aircraft in India, at its manufacturing plant, proposed to be in Uttar Pradesh and the rest 16 will be transported from Europe within two years. The group has reportedly agreed to supply all the aircraft within 10 years. The C-295 aircraft is used as a transport aircraft by the military to transport tonnes of equipment, weapons, etc.

This is the biggest private manufacturing military order to date. The deal was signed under the ambit of the Make in India initiative, launched by the PM Modi government to build an “Atmanirbhar Bharat ”.

Airbus, in collaboration with the Tata group decided to build a final assembly line in India to build the C-295 military transporter, a replacement for the Indian Air Force’s Avro aircraft fleet, the space company had informed earlier. Airbus is Europe's largest space corporation, with a long history of collaboration with the Indian Space Research Organization (ISRO). They collaborated on the design and construction of two communication satellites for European customers: Eutelsat W2M in 2008 and HYLAS-1 in 2010, among other projects.

Tata group makes a bid in Air India’s disinvestment

In another significant investment, the Tata group has also made a financial investment bid in national carrier Air India’s disinvestment. A Tata Sons spokesperson told PTI that it has put in a bid for Air India. Earlier, it was reported that apart from the Tata Group, SpiceJet too may place their bids in the Air India disinvestment. The Centre is planning to sell a 100% stake in the Air India airline and its low-cost subsidiary Air India Express, and a 50% stake in ground handling company Air India SATS Airport Services Private Limited (AISATS). Other properties including the Air India building in Mumbai, Airlines House in Delhi will also be part of the deal. 

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