A contract worth Rs 47,000 crore has already been signed between the government and Hall for the manufacture and supply of 73 LCA Tejas Mark-1 jets for the Indian Air Force (IAF). Just as such a big deal will boost the domestic defense market, it will also encourage new traders to invest in capital and develop innovative energy. But not Tejas, the industry is now eyeing another big deal, with the IAF signing a Rs 15,000 crore deal with Tata and Airbus. According to the agreement, Tatara will supply 56 C-295 transporter aircraft to the Air Force, the Economic Times reported.
Once the agreement, awaiting final approval by the Defense Committee, Committee on Security (CSS), is completed, this will be the first time India has built a military aircraft of this size. The C-295 will be built in India by a joint venture between Tata and Airbus, and most importantly, it will also have a complete technology transfer, Swarajya said in its report.
The agreement will also create 2,500 new jobs in India over the next five years. The project will be completed under the ‘Make in India’ project where on the one hand such aluminum blocks will be literally imported from abroad and on the other hand a ‘take off ready’ aircraft will come out of the assembly line.
The CA295 transport aircraft will be instrumental in replacing the IAF’s aging obsolete Avro fleet. The fleet of such giant aircraft ‘Avro’ in the hands of India is very old. These are becoming a cause of concern for the country in many cases in modern times. Deals on these 57 carrier aircraft are in the final stages. Once the deal is done, the new Airbuses will replace the old Avro fleet.