India to begin contract negotiations to acquire 56 Airbus C-295 Transports

Prashant12

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India concludes price negotiations to acquire 62 C295 transport aircraft



India’s MoD has concluded price negotiations to acquire 62 C295 tactical transport aircraft (similar to this one) for the IAF and ICG. Source: Airbus

India's Ministry of Defence (MoD) has concluded price negotiations to acquire a total of 62 Airbus Defence and Space C295 medium transport aircraft (MTA) for the Indian Air Force (IAF) and the Indian Coast Guard (ICG).

IAF sources told Jane's on 28 March that the MoD's Contract Negotiation Committee (CNC) concluded consultations with Tata Advanced Systems Limited (TASL) - which is in a joint venture (JV) with Airbus for the MTA programme - to procure the 62 platforms for around EUR2.8 billion (USD3.15 billion).

They said the aircraft deal - which would include 56 platforms for the IAF to replace the service's ageing fleet of Avro 748M transports, and six for the ICG - is expected to be signed after a new Indian government assumes office following general elections set to begin on 11 April.

The MTA programme envisages the direct import of 16 C295s and the local assembly/licence-building of the remaining 46 aircraft at a facility set up by the JV near Bangalore. In keeping with the 2013 MTA tender, 24 of these will be imported in kit form for local assembly and include a 30% indigenous content. The level of indigenous content is then expected to double to 60% in the remaining 22 platforms.

Delivery of the first locally assembled C295 is expected to begin within 60 months of the contract being signed, industry sources said.

Senior IAF officers said that while the IAF's C295 version will fulfil its requirement for a tactical airlifter, the ICG variant is expected to operate as a multimission maritime aircraft.

https://www.janes.com/article/87518...iations-to-acquire-62-c295-transport-aircraft
 

tharun

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Useless deal we could have done better negotiation.
We had 104 An-32 which can be eventually replaced by C-295.

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uoftotaku

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Hope the line once established will not be wasted or left idle waiting for follow on orders. An-32 all need replacement...IN, ICG both need birds...DRDO has mentioned integrating Netra suite onto C295 platform, they could conceivably do same for SIGINT, ELINT, ISTAR, COMJAM and other similar mission profiles...and of course this presents a good opportunity for Home Ministry arms to get their own air wings, CRPF, BSF, ITBP, NSG and for sure NDRF would love to have their own planes...would also relieve pressure from IAF to provide lift....and of course domestic commercial airlines could be "encouraged" by the Govt to order passenger or combi versions to further the Govts UDAN-RCS goals
 

jackprince

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Useless deal we could have done better negotiation.
We had 104 An-32 which can be eventually replaced by C-295.

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And how do you know that you could have done better negotiation?

Everyone is eggspurt these days. All knows better than the people dealing with actual facts & figures. Yes, C295 will replace Antonovs eventually. But, cannot IAF be planning a part of replacement with C130Js?

In fact, knowing Indian MoD the price negotiation must have been thorough. There can always be follow on order.
 

WolfPack86

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Airbus Military offers A400M to India
With close to securing the final contract worth $ 2 Billion for it’s C295 medium transport aircraft (MTA) from the Indian Air Force (IAF) and the Indian Coast Guard (ICG), European aerospace major Airbus Military has now offered India its A400M Atlas turboprop military transport aircraft to further boost India’s strategic reach as per industrial sources close to idrw.org. With Boeing C-17 Globemaster III production line been closed down and IAF been already delivered the 11th C-17 Globemaster III transport aircraft. IAF still needs more tactical air-lifter with strategic capabilities since 14 IL 76 MD strategic/heavy transport fleet acquired in the early ’80s from the Soviet Union is already aging fast and due to low serviceability issues, Airbus Military thinks A400M is a beautiful complement to C-17 fleet of IAF. In India, Airbus Military has plans to position the A400M between Lockheed Martin C-130J Super Hercules and Boeing C-17 Globe masters. Royal Air Force is the only airforce which operates both C-17 Globe masters and A400M in its fleet and IAF will become second air force to operate both tactical air-lifter if decides to buy them too but since IAF is spoiled for choices when it comes to tactical air-lifter on offer to it, A400 will have lot of competition from rivals but due to budget constraints IAF is looking forward to ink contract for C295 MTA soon with Airbus. India already has walked away from the Indo-Russian Medium transport aircraft (MTA) joint venture set up for the development of a new tactical air-lifter to replace IAF’s aging fleet of An-32 turboprops military transport aircraft. Antonov of Ukraine also has offered its An-132 a new light, multi-purpose transport aircraft which is a modernized variant of the An-32 cargo plane to India under Make in India deal. Many defense analysts believe that C295 MTA which was procured to replace aging HS 748 AVRO Air-lifter will also be replacing the An-32 fleet due to Make in India component being involved in the deal which makes more sense to order more of the same type then instead go for a new type. C-17 fleet which has a 100% operational availability record in IAF has been criticized by the Comptroller and Auditor General (CAG) of India for use of them in logistical support missions while carrying a lower payload thus being underutilized most of the time below their payload-carrying capability. Airbus Military thinks that C-295 and then C-130, followed by A400M and C-17 will complement the payload/range capability which IAF might be looking for in the near foreseeable future to rebuilt India’s strategic reach once IAF starts retiring An-32, HS 748 AVRO, and IL-76 Air-lifters from its fleet.
https://idrw.org/airbus-military-offers-a400m-to-india/
 

WolfPack86

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Cost negotiations for 62 C-295 Transport Aircraft concluded
The Defence Ministry has concluded cost negotiations with Tata and Airbus for the purchase of Airbus C-295 transport aircraft as part of the long-delayed Avro replacement programme of the Indian Air Force (IAF). “Cost negotiations for the C-295 deal have been completed. It is now being processed to put it up for clearance from the Cabinet Committee on Security (CCS). It is expected to be signed in the next few months,” a senior Defence official said.

Initially, after the completion of cost negotiations, it was felt that a waiver from the Defence Acquisition Council (DAC) would be needed on some technical issues. But Defence sources said the issue “has now been resolved.”

The IAF has 56 Avro transport aircraft which are in urgent need of replacement. A further six aircraft for a maritime mission role for the Indian Coast Guard have been added taking the total number required to 62, estimated to cost upwards of $3 billion.



Funds crunch ::

While sources expressed optimism that the deal would be signed in this financial year, it is contingent on the availability of funds. The IAF has a situation where committed liabilities for this year are more than the capital allocation in the budget and few big ticket deals are on the agenda. For instance, the IAF recently concluded a deal for five additional Akash Surface-to-Air systems and a deal for 83 Light Combat Aircraft (LCA)-MK1A is expected to be concluded this fiscal.

As part of the deal, 16 aircraft will be built by Airbus at its manufacturing facility and delivered in fly away condition and the remaining will be built locally by the Tata-Airbus joint venture under transfer of technology.

The sole bid by Airbus and Tata with the C-295 aircraft for the Avro replacement programme was approved by the DAC in May 2015, but the contractual negotiations have been repeatedly delayed. The Request For Proposal (RFP) was issued to global firms in May 2013.

This deal has become even more critical as a separate project to jointly co-develop and produce a Medium Transport Aircraft (MTA) of 20 tonnes with Russia to replace the An-32s in service was scrapped after initial design discussions.

While the An-32s are being upgraded and are not due for immediate replacement as they have residual air frame left, the IAF has no future MTA lined up. In the absence of a new MTA development project, there is discussion on making the C-295 the replacement for the An-32 fleet in future.
http://defencenews.in/article/Cost-negotiations-for-62-C-295-Transport-Aircraft-concluded-757944
 

mayfair

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About time............Our medium-transport fleet is getting long in tooth.
 

Assassin 2.0

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The C 295 (transport plane programme with Tata-Airbus) is at the final stages. It is under process in the acquisition wing of the ministry of defence. In the transport stream, it is again an important Make in India project and from the industry perspective, it will bring in manufacturing capability in this segment.


IAF chief statement.
 

SATISH

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Wish we could negotiate a few aircrafts for AWACS India based on this platform rather than go for a completely new platform from Boeing or Airbus.
 

WolfPack86

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IAF says No to C-295 based Netra AEW&C variant

India’s Defence Research Development Organisation (DRDO) for the first time in Aero India 2019 had displayed and proposed an indigenously-made active electronically scanned array (AESA) radar balance beam antenna suite called Netra AEW&C that was adapted on an Airbus Defence & Space C295 tactical transport aircraft that was later formally proposed to the government and Indian Air Force (IAF) The plan was to use the same radar developed for IAF’s three Embraer ERJ 145 AEW&C Netra aircraft to be integrated with the C295. but idrw.org has been informed that IAF has not shown much interest in the proposal and rather has decided to stick with the ERJ 145 platform for the second-order that currently has been worked out by the HQ. Indian Air Force Chief RKS Bhadauria recently had confirmed that IAF is looking to induct 5 more EMB-145 Netra AEW&C aircraft and was also willing to procure these platforms from the Used Civilian market since the ERJ 145 platform was based on a commercially available jet. idrw.org has been told by industrial sources that IAF is also open to considering ERJ145XR that now boasts of an extended range of 2,000n that’s 450n extra over the current ERJ 145 platform. Defense analysts Ranesh Rajan speaking to idrw.org commented that ” turbofan-powered platform has an advantage over speed and Service ceiling when compared to a turboprop platform”, and also added that ” C295 based Netra AEW&C could have been economical but it could have been stepping backward in terms of Operational flight performance which could have affected the performance of the Radar”. idrw.org can confirm that the total combined requirement for Netra AEW&C could be 15 but post 5 more based on the ERJ 145 platform, the platform could get even larger that could be based on an indigenously developed platform by the National Aerospace Laboratories (NAL). DRDO-IAF is also working on the ” AWACS India ” Program under which a non-rotating AESA Radar in a rotodome AWACS antenna will be mounted on top of six Airbus A330.
 

FalconSlayers

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And how do you know that you could have done better negotiation?

Everyone is eggspurt these days. All knows better than the people dealing with actual facts & figures. Yes, C295 will replace Antonovs eventually. But, cannot IAF be planning a part of replacement with C130Js?

In fact, knowing Indian MoD the price negotiation must have been thorough. There can always be follow on order.
C-295 is to replace 56 Avro Hawker Siddeley aircrafts of IAF not An-32.
 

WolfPack86

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The IAF selected the Airbus C-295 to replace the HS748. The $2 billion deal for 56 C-295 has cleared the cost negotiation stage, CCS is yet to approve the acquisition. Airbus is working with DRDO for AEW&CS(pic1) & Multi Mission Maritime Aircraft(MMMA) for the Coast Guards(Pic2).
 

FalconSlayers

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The IAF selected the Airbus C-295 to replace the HS748. The $2 billion deal for 56 C-295 has cleared the cost negotiation stage, CCS is yet to approve the acquisition. Airbus is working with DRDO for AEW&CS(pic1) & Multi Mission Maritime Aircraft(MMMA) for the Coast Guards(Pic2).
IAF is planning 29 Netra AEWACS. Sounds legit, more in number if less effective as we sill already have 5 PHALCON AEW&CS aircraft after 3 more are delivered total systems will become 34 AEW&CS compared to China’s 20 but at a cost of less coverage angle but thats OK.
 

WolfPack86

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Upgraded Israeli drones, Airbus aircraft, Tejas — deals on defence ministry agenda for 2021
The defence ministry is expected to sign a deal for the 83 LCA Mk 1 A around next month when India’s air show Aero India takes off in Bengaluru.

New Delhi:
The Ministry of Defence has listed procurement of C-295 transport aircraft from Airbus through Make in India, along with the Tejas Mk 1-A, indigenous Light Combat Helicopter and upgraded Heron drones from Israel, as the major deals that are to be inked in 2021.

While both C-295 and Tejas deals have been pending for long, the ministry in its annual report said both deals will be inked in the near future.

On the Tejas deal, it said the case for procurement of advanced 83 LCA Mk 1A from Hindustan Aeronautics Limited (HAL) is at final stage of approval by the Cabinet Committee on Security (CCS) and contract is “likely to be signed soon”.

It is expected that the deal will be signed around next month when India’s air show — Aero India — takes off in Bengaluru.

“Case of procurement of 56 C-295 from M/s Airbus with participation of an Indian Production Agency for manufacture of 40 aircraft (out of total 56) in India is also at CFA approval stage and contract is likely to be signed in the near future,” the ministry has said in its report.

It added that this is a first-of-its-kind deal that envisages the participation of private companies and would prove to be a boost for the Indian defence industry.

C-295s to replace Avro 748 aircraft
The IAF had selected the C-295 as the replacement for its ageing fleet of Avro 748 transport aircraft that first flew in 1961. While the first 16 aircraft are supposed to be built at the Airbus facility in Spain, the remainder are to be manufactured in India by Tata Advanced Systems Limited.

C-295 is a multi-role transport aircraft that can carry a maximum payload of 9.25 tonnes. Since its dimensions are smaller than the rest of the IAF’s transport fleet — C 130Js, C-17s and IL-76s — the C295s can take off and land at many air strips where the larger ones can’t.

Talking about the upgrade of Israeli drones Heron and the procurement of Light Combat Helicopter from HAL, the ministry said it is “also at advance stage and contracts are likely to be signed in the first quarter of 2021”.

Procurement push amid LAC tensions
As reported by ThePrint, the upgrade plans came as India is on a shopping spree to ramp up its firepower and surveillance capabilities as the ongoing tensions at the Line of Actual Control (LAC).

According to the plan, the Herons are supposed to be upgraded with laser-guided bombs, precision-guided munitions, and anti-tank missiles.

The forces are also planning to equip the drones with better surveillance and reconnaissance capabilities.

This is part of a project that has got a sudden push due to the ongoing tensions at the Line of Actual Control.
 

WolfPack86

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India to sign $2.5-billion contract for 56 transport planes for IAF
India will sign a $2.5-billion contract his year for the supply of 56 medium transport aircraft to the Indian Air Force to replace its fleet of aging Avro-748 planes, officials familiar with the development said on Tuesday.

Airbus Defence and Space and Tata Advanced Systems Limited (TASL) will jointly execute the project to equip the air force with 56 C-295 transport aircraft under the Make-in-India initiative in the aerospace sector.

Under the contract, Airbus will supply the first 16 aircraft in flyaway condition while the remaining 40 will be assembled in India by TASL, the officials said.

The procurement of 56 C-295 from Airbus with participation of an Indian production agency for the manufacture of 40 aircraft (out of total 56) in India is at financial approval stage and the contract is likely to be signed in the near future, the defence ministry said in its year-end review.

“The case is first of its kind which envisages participation of private companies and would prove to be a boost for our defence industry,” the ministry said.

While the C-295s are meant to replace the Avro-748 transport planes, the new aircraft will also be suitable for demanding roles that the AN-32 currently undertakes, as previously reported by Hindustan Times.

The Avro-748 entered service in the early 1960s and has been long due for replacement, said Air Vice Marshal Manmohan Bahadur (retd), additional director general, Centre for Air Power Studies.

“The replacement C-295 project has been in the works for the past eight years and has spawned a new term --- the Avro model --- in the acquisition field due the unique path adopted. Actually, there is an acquisition fatigue that has crept in, a state that needs to be broken by actually inducting the aircraft that is sorely required by the IAF. The C-295 would also be the natural replacement for AN-32s which too would be getting phased out soon,” Bahadur said.

The first 16 planes will be supplied in two years, and the deliveries of the 40 locally-assembled ones will be spread over an additional eight years. The aircraft can operate from short, unprepared airstrips and carry out a variety of missions in all-weather conditions.

The contract for buying 83 LCA Mk 1A aircraft for the IAF from Hindustan Aeronautics Limited (HAL) is also likely to be signed soon after approval by the Cabinet Committee on Security, the ministry said its review. Last March, the defence ministry gave a green light to the purchase of 83 advanced Tejas jets from HAL. The deal is expected to be worth Rs 38,000 crore.

The deal for the 83 Mk-1A jets will take the total number of Tejas variants ordered to 123.

The 40 LCAs already ordered by the IAF are in the initial operational clearance (IOC) and the more advanced final operational clearance (FOC) configurations. The LCA Mk-1A will come with additional improvements over the FOC aircraft, making it the most advanced Tejas variant so far.

The Mk-1A variant is expected to come with digital radar warning receivers, external self-protection jammer pods, active electronically scanned array radar, advanced beyond-visual-range missiles and significantly improved maintainability.

India is also likely to sign a deal with Israel for additional Harop (P-IV) loitering weapon systems in the first quarter of 2021, the year-end review said. The Harop is designed to locate and attack high-value targets with precision. The weapon (also known as a suicide drone) tracks the target, dives on to it and detonates the warhead on impact, according to its maker Israel Aerospace Industries.
 

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