C-295 aircraft deal - Story so far: As Prime Minister Narendra Modi lay the cornerstone for the construction of the European C-295 military transport aircraft on Sunday, he urged big international defence corporations to produce military equipment and platforms in India for the rest of the globe.

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In his speech, PM Modi asserted that his government's "stable, predictable and futuristic" policies are putting India on a higher trajectory of economic growth and that the nation is going forward with the motto of "Make in India and Make for the Globe."

It is the first initiative of its sort in which an Indian private enterprise will produce a military aircraft. The C295 aircraft will be produced outside of Europe for the first time.

What is the deal?

The purpose of this contract is to replace the 56 outdated Avro aircraft that the Indian Air Force purchased in the 1960s.

Under the agreement, the Tata Group will manufacture 40 C-295 medium transport aircraft at the Vadodara facility in cooperation with global aerospace major Airbus under the provisions of a Rs 21,935 crore deal. The deal was sealed in September last year to supply the planes to the Indian Air Force. The contract with the government is for supplying 56 aircraft and Airbus will deliver the first 16 planes in 'fly-away' condition from its final assembly line in Spain between September 2023 and August 2025.

Impact on India's defence sector

Vadodara will give "Make in India, Make for the Globe" a new boost as the factory is now equipped to accept orders for export to other nations due to the rising demand for passenger and freight aircraft globally.

Vadodara, known for being a center of culture and learning, will take on a new identity as a hub for the aviation industry, said PM Modi.

On Sunday, the prime minister highlighted that, in the past, it was common wisdom to concentrate on the service sector since manufacturing was seen as something beyond reach, but today, the nation is boosting both the services and manufacturing sectors.

{Image source: Airbus website}

By taking this attitude, India may increase its defence exports and reduce its reliance on foreign suppliers of military hardware. It can be considered the beginning of a long journey towards military industry independence.

“The project offers a unique opportunity for the Indian private sector to enter into the technology-intensive and highly competitive aviation industry,” the Ministry of Defense said. “It will augment domestic aviation manufacturing resulting in reduced import dependence and expected increase in exports.”

With more than 42.5 lakh man-hours of work in the aerospace and defence sector, the project is anticipated to create 600 highly skilled jobs directly, over 3,000 indirect jobs, and an additional 3,000 medium-skill employment prospects, as per PTI report.

C-295 Aircraft Specifications
 

The C-295 is utilised for tactical transport of up to 71 infantry or 50 paratroopers and for logistic operations to regions that are inaccessible to current heavier aircraft because of its demonstrated ability to operate from short or unprepared airstrips.

Air-to-Air refueling

The C-295 can be converted into an air tanker that can deliver up to 6,000 kg of gasoline to fixed and rotary wing receivers by adding a detachable refueling kit.

{Image source: Airbus website}

Airborne Early Warning (AEW)

The C-295 has a cutting-edge radar with 360-degree coverage to give a complete picture of the airspace in its Airborne Early Warning variant.

Water-Bomber

The C-295 can be transformed into a powerful water bomber that can put out forest fires with up to 7,000 litres of water due to a flexible roll-on/roll-off system.

{Image source: Airbus website}

Armed/Ground ISR (Intelligence Surveillance and Reconnaissance)

A close-air-support operation that uses an ISR with a multi-mission radar that can also be weaponized.

The aircraft can be utilised for casualty or medical evacuation as well as airdropping loads and paratroopers.

It is equipped to handle special missions, disaster relief operations, and maritime patrol responsibilities.