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New Delhi approves acquisition of 56 C295 transport aircraft for IAF

India's CCS approved on 8 September the procurement of 56 C295MW medium transport aircraft (similar to this one) for the IAF to replace the service's ageing Avro 748M transport fleet. (Airbus)

India's Cabinet Committee on Security (CCS) approved the procurement of 56 Airbus Defence and Space C295MW medium transport aircraft for the Indian Air Force (IAF) on 8 September that will replace the service's ageing Avro 748M transport fleet.

The Indian Ministry of Defence (MoD) said in a statement that 16 aircraft will be acquired directly from Airbus and delivered in fly-away condition from Spain within 48 months of the signing of the contract, whereas the remaining 40 platforms will be manufactured by the Tata consortium – as part of a joint venture (JV) with Airbus – within 10 years of the contract award.

Although not officially announced, the acquisition is estimated to be valued at INR210 billion (USD2.86 billion), according to industry sources.

These sources alsor told Janes that, in accordance with the 2013 medium transport aircraft (MTA) tender, 24 of the 40 aircraft will be imported in kit form for local assembly and include a 30% indigenous content, the latter of which is set to double for the remaining 16 platforms. These aircraft will be manufactured by the JV and several local companies will be involved in the production of components.

The C295 procurement is expected to take place under the MoD's Defence Procurement Procedure 2011 (DPP-2011), which entails a 30% offset liability to be discharged through India's military and civil aviation sectors.

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