Tata, Airbus sign Rs 20,000-cr contract to manufacture military aircraft
The Defence Ministry on Friday inked a nearly Rs 20,000 crore deal with Airbus Defence and Space of Spain to procure 56 C-295 medium transport aircraft which will replace the ageing Avro-748 planes of the Indian Air Force.
It is the first project of its kind under which military aircraft will be manufactured in India by a private company, officials said.
Under the deal, 16 aircraft will be delivered in a flyaway condition by the Airbus Defence and Space of Spain within 48 months of signing the contract.
The remaining 40 planes will be manufactured in India by a consortium of the Airbus Defence and Space and Tata Advanced Systems Limited (TASL) within 10 years of signing the contract, officials said.
