Gujarat has struck a huge new deal – Tata and Airbus will produce transport planes for the army in Prime Minister Narendra Modi’s home state. The cost of the project is a massive Rs 22,000 crore, or $2.66 billion.
“This is the first project of its kind where a military aircraft will be manufactured in India by a private company. The total cost of the project is Rs 21,935 crore. The aircraft can also be used for civilian purposes,” said Defense Minister. dr. Ajay Kumar.
The factory will be inaugurated on Sunday by the Prime Minister in Vadodara. The new project, with the promise of thousands of jobs, comes just as Gujarat prepares to vote for its next government.
In September, Gujarat defeated Maharashtra to secure a $19.5 billion investment to produce chips (semiconductors) by a joint venture between Vedanta Ltd and Taiwanese Foxconn. Their factories will be set up near Ahmedabad with significant subsidies for electricity and other incentives from the state and are expected to create more than 100,000 jobs.
The Tata-Airbus plan is seen as a significant gain for the Prime Minister’s “Make-In-India” campaign to reduce the country’s reliance on onboard purchases of military technology and equipment.
The Center last month approved the purchase of 56 Airbus transport aircraft. “As part of the contract, 16 aircraft will be delivered in flying condition and 40 will be produced in India,” the defense minister said today. “This is the first project of its kind where a military aircraft will be manufactured in India by a private company,” he said.
According to an official statement, the first 16 flying or turnkey aircraft will be received between September 2023 and August 2025. The first Gujarat-made aircraft is expected in September 2026.
The new C-295 transport aircraft will “replace the Indian Air Force’s aging Avro aircraft,” the government said. “It has a tailgate for rapid response and para-dropping of troops and cargo. Short take-off/landing from semi-prepared surfaces is another feature. The aircraft will enhance the IAF’s logistical capabilities,” the statement said. .
(With input from agencies)