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

WolfPack86

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India to ink two landmark military aircraft deals in next few months
India is gearing up for two major long-pending military aircraft deals, together worth over Rs 50,000 crore, in the new year. The contracts for 83 indigenous Tejas fighters and 56 medium-transport aircraft through a Tata-Airbus joint venture are set to be inked within the next few months.

The over Rs 37,000 crore order for 83 Tejas Mark-1A jets from defence PSU Hindustan Aeronautics Ltd will be the biggest-ever deal in the indigenous military aviation sector. These 83 fighters, the deliveries of which will begin three years after the contract is inked, will have 43 “improvements” over the 40 Tejas Mark-1 already ordered by the IAF.

The Tata-Airbus project to build 56 twin-turboprop -295 aircraft, which will replace the old Avro-748 aircraft of IAF, in turn, will be the first time an Indian private sector company will enter the defence aerospace arena.

While Airbus will supply the first 16 aircraft in two years after the contract is inked, the rest 40 will thereafter be built in India within eight years, in the project which was initially valued at Rs 11,929 crore.

Both the projects have been sent to the Cabinet Committee on Security (CCS) for the final approval. “The Tejas contract will be the first to be approved by the CCS. It is likely to be inked in early-February. The C-295 project, with the participation of Tata as the Indian production agency will follow subsequently,” said an official on Tuesday.

The overall cost of acquiring the 83 single-engine Tejas fighters and their support package has been cut down from the earlier around Rs 56,500 crore being demanded by HAL after protracted negotiations, as was reported by TOI last year.

The IAF’s two Tejas squadrons, the “Flying Daggers” and “Flying Bullets” at Sulur, have till now inducted only around 20of the original 40 Tejas Mark-1 fighters, which were all slated for delivery by December 2016 under two contracts worth Rs 8,802 crore inked earlier.

The 83 Tejas Mark-1A fighters will have 43 “improvements” to improve maintainability, AESA (active electronically scanned array) radar to replace existing mechanically-steered radar, air-to-air refuelling, long-range BVR (beyond visual range) missiles and advanced electronic warfare to jam enemy radars and missiles.

After these 123 fighters, IAF is also looking to induct 170 Tejas Mark-2 or the MWF (medium weight fighter) jets with more powerful engines and advanced avionics. But IAF is banking upon the first 123 Tejas to add to its fighter squadrons, which is down to just 30 (each has 18 jets) when at least 42 are required for the requisite deterrence against Pakistan and China.

The C-295 project, which has been pending for almost a decade, is meant to replace old Avro aircraft, first inducted in the early-1960s, as well as take on some “tasks” of the ageing AN-32 fleet, which has witnessed two major accidents in which 42 military personnel were killed in the Bay of Bengal in July 2016 and Arunachal Pradesh in June 2019, as was reported by TOI earlier. The C-295 aircraft can even find some buyers in the civil aviation market, say officials.
 

Vishalreddy3

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I always wanted India to operate A400M since I was in 10th grade, but nevertheless c295 is an amazing compact aircraft used for multi role purposes and a true all-rounder. It could be used for
*Army Aviation Corps (Supply, Logistics, Transportation, AWACS)
*Naval Air Rim (Maritime Security and Surveillance, plus all the mentioned above)
*Airforce (all the mentioned above)
*Aviation Research Centre (SIGNIT, Transportation of SFF and used for covert ops, etc)
*Coast Guard (same as navy)
*Border Guards (Surveillance, border security, etc)
 

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Rs 15,000 crore Tata-Airbus deal for military transport aircraft at CCS door
With contract for the light combat aircraft signed–the largest military order placed domestically--focus has shifted to a mega deal which, if approved by the PM-led cabinet committee on security, will see military transport aircraft being manufactured in India.

High on the priority list of Indian Air Force is finalisation of an estimated Rs 15,000-crore contract to manufacture the C 295 transport aircraft in India by a Tata-Airbus combine, which would make it the first time a military plane of such size is built domestically.

People aware of the matter told ET that the plan to acquire 56 aircraft to replace the ageing Avro fleet is in the final stage, with top-level approvals expected soon to move it to the next stage as a showcase of the ‘Make in India’ initiative.


Unlike the RS 48,000-crore LCA Mk1A contract, which was awarded on a nomination basis, the transport aircraft deal underwent a competitive process and was reserved for the private sector to bring in alternative capabilities.

The C 295 is a prominent focus at the AeroIndia show, with foreign collaborator Airbus – which is committed to transferring technology to India as part of the contract – saying the final assembly line would generate at least 2,500 new high-skilled jobs in the coming years.

“The Avro replacement campaign could be a game-changer, as the first tangible ‘Make in India’ aircraft manufacturing programme by a private industry player. We propose to work with the Tata Group to build a cutting-edge C295 Final Assembly Line that will be fed by an ecosystem of local suppliers, including MSMEs,” Rémi Maillard, president, Airbus India & South Asia, told ET.

The order size could go up with potential orders by the coast guard and navy.

Industry sources said that plans are also in place to offer the aircraft for exports in the region and in different, specialised configurations to the Indian forces as well.

“It is a very deep Make in India project, where at one end aluminium blocks will literally be imported and at the other end a flying aircraft would emerge from the final assembly line,” one of the sources said.

Besides the Tata Group, the project is expected to give significant orders to at least three dozen sub-suppliers who have been roped in to manufacture a range of parts for the aircraft. This ecosystem will also be vital for the maintenance and sustenance of the fleet, which is expected to be in service for at least three decades.
 

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Cabinet approves procurement of 56 transport aircraft, 40 to be manufactured in India
The Cabinet Committee on Security on Wednesday approved the procurement of 56 C-295MW transport aircraft from Spain's Airbus Defence and Space for the Indian Air Force. Among these,16 aircraft will be delivered in flyaway condition from Spain, while 40 to be manufactured in India.




The Cabinet also approved six new made-in-India airborne early warning and control aircraft (AEW&C).

“Sixteen aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract and forty aircraft will be manufactured in India by TATA Consortium within ten years of signing of the contract,” said the Ministry of Defence in a statement.

This is for the first time that a project of this kind has been approved where a military aircraft will be manufactured in the country by a private firm.

“All the 56 aircraft will be installed with indigenous electronic warfare suite,” said the defence ministry.

Apart from Tata Consortium, the project will give a boost to the aerospace ecosystem in India wherein several Micro, Small and Medium Enterprises (MSMEs) spread over the country will be involved in the manufacturing of parts of the aircraft.

The programme will provide a major boost to the 'Atmanirbhar Bharat Abhiyan' of the government as it offers a unique opportunity for the Indian private sector to enter into the technology-intensive and highly competitive aviation industry.

Through this project, the Indian government is also augmenting domestic aviation manufacturing resulting in reduced import dependence and an expected increase in exports.

As per the release, a large number of detailed parts, sub-assemblies and major component assemblies of aerostructure are scheduled to be manufactured in India.

Under the project, around 600 highly skilled jobs are expected to generate directly, while 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 will be generated.

Among other details, the defence ministry said that during the process of manufacturing in India, it is expected that all the suppliers of TATA Consortium who will be involved in special processes will gain and maintain globally recognised National Aerospace and Defence Contractors Accreditation Program (NADCAP) accreditation.

Also, ‘D’ Level servicing facility (MRO) for C-295MW aircraft are scheduled to be set up in India before completion of deliveries. It is expected that this facility will act as a regional MRO hub for various variants of C-295 aircraft.

The C-295MW aircraft is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the ageing Avro aircraft of IAF. The aircraft has a rear ramp door for quick reaction and para dropping of troops and cargo.

AEW&C aircraft
The six AEW&C aircraft cleared by the Cabinet Committee on Security would be built on the Airbus 319 aircraft to be provided by the state-owned Air India, top sources told India Today TV. Sources said that the six aircraft, to be built by the DRDO, will further improve Air Force's surveillance capabilities along borders with China and Pakistan.

AEW&C Block 2 aircraft are to be developed by the DRDO under a Rs 11,000 crore project. The six aircraft would be modified to fly with a radar that will give 360-degree surveillance capability to the defence forces. The project to build the AEW&C system on existing aircraft from the Air India fleet may also mean that India may not buy the six Airbus 330 transport aircraft planned to be acquired earlier from the European firm.
 

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TATA ARM ‘WORKING ON CORE TECH THAT WILL MAKE INDIA TRULY SELF-RELIANT IN DEFENCE’; C-295 AIRCRAFT PROJECT ON TRACK
TATA Advanced Systems Limited (TASL)
— the TATA Sons’ subsidiary which has emerged as the country’s leading private defence manufacturing company, is confident of jointly producing with Airbus more than 40 of the 56 C-295 transport aircraft in India which would be “more affordable globally”. In an exclusive interview with Business Line, TASL CEO and MD Sukaran Singh spoke extensively about indigenously built new unmanned and optronics systems the company will roll out, besides the need to push for development of core technologies for real self-reliance in the defence sector. Edited excerpts:

Can you share TASL’s expansion and growth plans?

TATAs are going forward in two ways; one is by proactive investment by us without any orders. The other one is with the DRDO. TATAs are making attempts in both cases where technologies are denied to India... In these strategic areas, true tech cannot be transferred, it is not easy even if they want to. It is not a software pack where you just give them the design... If we actually don’t know the ‘know-why’ we cannot build the next generation products… We are developing with the help of start ups unmanned systems. We are also developing capabilities. Tomorrow, if it is somebody else’s design, we can go for global quality, great production.

TATAs are looking at doing things which benefit the country. When we look at projects we look at two to three things. First, whether these are strategic to the country where technologies have often been denied. This is our real area of growth. And it is actually hard work, and the other filter is that we must make a commercially profitable enterprise… Of course, this is from India’s project point of view. We will always support foreign companies, which want to make global scale products. India as a source of low-cost quality products will always be held.

Where is ₹22,000 crore worth C-295 aircraft project headed?

It’s all on time. It’s all on track. When we got the project we had a lot of time thinking through the project on timelines... we are absolutely on track, certain things had to start early, certain things can start a little later, and so on and so forth.

Where will the production set-up be located?

As far as the FAL location is concerned, we will share it with you at the right time. Frankly, at the end of the day our board has to decide.

Will the production start from the scheduled time, that is 2025?

Absolutely, we will do global quality at the global rate, at the right time.

Will TASL manufacture more than 40 of 56 planes it has to supply to armed forces?

Yes, absolutely. I think our partnership with Airbus is strong and they recognise that the product we are going to make in India will be more affordable globally. The partnership is of mutual trust. India itself will require more C-295s, so more will be produced in India than 56. I cannot say how many. I cannot say when… TATAs have spent not just resources, but management time, so we have taken a risk… The kind of capability we are developing is very transferable… to build any aircraft line... that’s what is strategic. Tomorrow if the government says build a fighter aircraft line, we can do that. Effectively we are doing all this right now..

Products that are to be rolled out soon?

I can tell that we have orders for both, land systems as well as optronics for exports. We have already supplied optronics to the Indian Army that can see 20 kms out. And we have now developed new systems that can see 40 to 50 kms out... and these are cutting edge... We are also putting these systems on boats and ships so that you can extend their reach. We are developing the optronics for our aerial platforms and so on... We certainly are going to come up with many unmanned systems and loitering ammunition, precision weapon systems. There are very few countries that can make the kind of systems I’m talking about. These platforms at least from India’s perspective are next-generation platforms designed and built in India. New thing we are going to do is a whole application of artificial intelligence, but I don’t want to talk about it right now. There are many other things which beyond a point, we are not in a position to share. We are exporting all our air structures, and military land systems.
 

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