TATA identifies over 125 Indian MSMEs for domestic manufacturing of transport aircraft

The domestic manufacturing of C-295MW for the Indian Air Force will create over 600 direct and 3,000 indirect jobs in the country.


In a significant boost to ‘Make in India’ and domestic aviation manufacturing, PM Modi will lay the foundation stone of a transport aircraft manufacturing project for the Indian Air Force (IAF) at Vadodara, Gujarat on October 30, 2022.

More than 125 Indian MSME suppliers spread over seven states have been identified by the TATA Consortium for domestic manufacturing of transport aircraft, C-295MW for IAF. This move by the defence ministry will catalyze employment generation in the aerospace ecosystem of the country. 

The manufacturing project is expected to generate 600 highly skilled jobs directly, 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 India’s aerospace and defence sector. Nearly 240 engineers will be trained at the Airbus facility in Spain.

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During the press conference held in New Delhi on October 27, 2022, Defence Secretary Dr Ajay Kumar said, as part of the contract, 16 aircraft will be delivered in flyaway condition and 40 will be manufactured in India by the Indian Aircraft Contractor, TATA Consortium of Tata Advanced Systems Limited (TASL) and Tata Consultancy Services (TCS) led by TASL. 

This is the first project of its kind in which 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 be used for civilian purposes as well.

Indigenous Aircraft

The project offers a unique opportunity for the Indian private sector and will augment domestic aviation manufacturing resulting in reduced imports and an increase in exports.

C-295MW is a transport aircraft of 5-10 tonne capacity with contemporary technology that will replace the ageing Avro aircraft of IAF. It has a rear ramp door for quick reaction and para-dropping of troops and cargo. Short take-off/land from semi-prepared surfaces is another of its features. The aircraft will strengthen the logistic capabilities of the IAF.

According to the officials, 96 per cent of the total man-hour work per aircraft that Airbus employs at its manufacturing facility in Spain will be undertaken in India by the TATA Consortium. Manufacturing of over 13,400 detail parts, 4,600 sub-assemblies and all the seven major component assemblies will be conducted in India, along with tools, jigs and testers. 

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Various systems such as engines, landing gear, avionics, EW suite etc. will be provided by Airbus Defence & Space and integrated into the aircraft by the TATA Consortium. The aircraft will be tested as an integrated system by the TATA Consortium. The aircraft will be flight tested and delivered through a Delivery Centre at the TATA Consortium facility.

The first 16 fly-away aircraft are scheduled to be received between September 2023 and August 2025, said the official statement. The first Made in India aircraft is expected by September 2026.

All 56 aircraft will be fitted with the indigenous Electronic Warfare suite of Indian DPSUs – Bharat Electronics Ltd and Bharat Dynamics Limited. After the completion of the delivery of 56 aircraft to IAF, M/s Airbus Defence & Space will be allowed to sell the aircraft manufactured in India to civil operators and export to countries which are cleared by the Government of India. 

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