New Delhi: The defence ministry on Friday inked a nearly Rs 20,000 crore deal with Airbus Defence and Space of Spain to procure 56 C-295 medium transport aircraft which will replace the ageing Avro-748 planes of the Indian Air Force.
It is the first project of its kind under which military aircraft will be manufactured in India by a private company, officials said.
Under the deal, 16 aircraft will be delivered in a flyaway condition by the Airbus Defence and Space of Spain within 48 months of signing the contract.
The remaining 40 planes will be manufactured in India by a consortium of the Airbus Defence and Space and Tata Advanced Systems Limited (TASL) within 10 years of signing the contract, officials said.
The contract was signed two weeks after it was cleared by the prime minister-led Cabinet Committee on Security.