Gujarat bags mega Rs 22,000 cr Tata-Airbus Defence aircraft project; PM Modi to lay foundation on Sunday

Prime Minister Narendra Modi will lay the foundation stone of the project on October 30, 2022 (next Sunday) at Vadodara in the presence of Defence Minister Rajnath Singh Minister of Civil Aviation Jyotiraditya M Scindia and Gujarat Chief Minister Shri Bhupendrabhai Patel.

Addressing a press conference, Defence Secretary Dr Ajay Kumar said, "This is the first project of its kind in which a military aircraft will be manufactured in India by a private company. The total cost of the project is Rs 21,935 crore."

The aircraft can be used for civilian purposes as well. as part of the contract, 16 aircraft will be delivered in flyaway condition and 40 will be manufactured in India by the Indian Aircraft Contractor, TATA Consortium of Tata Advanced Systems Limited (TASL) and Tata Consultancy Services (TCS) led by TASL, he said.

The aircraft can be used for civilian purposes as well, he added.

In September, the Centre had approved the purchase of 56 transport aircraft from Airbus.

"The first 16 fly-away aircraft are scheduled to be received between September 2023 and August 2025. The delivery of the first 'Made in India' aircraft is expected from September 2026," the defence secretary said.

According to Defence Ministry's statement, C-295MW is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the ageing Avro aircraft of IAF. It has a rear ramp door for quick reaction and para-dropping of troops and cargo. Short take-off/land from semi-prepared surfaces is another of its features. The aircraft will strengthen the logistic capabilities of the IAF.

Ajay Kumar said that the project offers a unique opportunity for the Indian private sector to enter into technology-intensive and highly competitive aviation industry.

It will augment domestic aviation manufacturing resulting in reduced import dependence and an expected increase in exports.

Also, 96 percent of the total man-hour work per aircraft that Airbus employs at its manufacturing facility in Spain will be undertaken in India by the Tata Consortium, Kumar said.

Manufacturing of over 13,400 Detail Parts, 4,600 sub-assemblies and all the seven Major Component Assemblies will be undertaken in India, along with tools, jigs and testers. Various systems such as engines, landing gear, avionics, EW suite etc. will be provided by Airbus Defence & Space and integrated into the aircraft by the TATA Consortium, according to the Defence Ministry's statement.

The aircraft will be tested as an integrated system by the TATA Consortium. The aircraft will be flight tested and delivered through a Delivery Centre at the TATA Consortium facility.

All 56 aircraft will be fitted with the indigenous Electronic Warfare suite of Indian DPSUs – Bharat Electronics Ltd and Bharat Dynamics Limited.

After completion of the delivery of 56 aircraft to IAF, Airbus Defence & Space will be allowed to sell the aircraft manufactured in India to civil operators and export to countries which are cleared by the Government of India.

The TATA Consortium has identified more than 125 in-country MSME suppliers spread over seven states.

"This will act as a catalyst in employment generation in the aerospace ecosystem of the country and is expected to generate 600 highly skilled jobs directly, over 3,000 indirect jobs and an additional 3,000 medium skill employment opportunities with more than 42.5 lakh man hours of work within the aerospace and defence sector of India," said the statement.

Nearly 240 engineers will be trained at the Airbus facility in Spain, it added.

In September, Gujarat secured a 19.5-billion-dollar project by a joint venture of Vedanta Ltd and Taiwan's Foxconn to produce chips (semiconductors).

Their plants will be set up near Ahmedabad with considerable subsidies on electricity and other incentives provided from the state and are expected to create over 100,000 jobs.