‘Make-in-India’ and ‘Make-for-World’ approach is the new buzz line of new India as India signed with Airbus Defence and Space to procure 56 C-295 aircraft, worth Rs 21,935 crore, to replace the IAF’s ageing Avro-748 planes of 1960’s. First 16 aircraft will be delivered between September 2023 and August 2025 in ‘fly-away’ condition from Airbus’s assembly line in Seville at Spain and the subsequent 40 aircraft will be manufactured by Tata Advanced Systems Ltd (TASL) at Vadodara plant between 2026 to 2031 in India as part of mutual agreement. The C-295 aircraft are special transport aircraft of 5-10 ton capacity with latest technology, has a maximum speed of 480 kmph with a rear ramp door for quick reaction and para-dropping of troops and cargo, capable of short take-off and landing from semi-prepared surfaces and Advanced Landing Grounds (ALGs). C-295 plane is used for tactical transport of up to 71 troops or 50 paratroopers, for logistic operations to locations that are not accessible to current heavier aircraft, can also be used for casualty or medical evacuation as well as for special missions for disaster response and maritime patrol duties.With this deal Indian private sector has entered into the technology-intensive and highly competitive aviation industry as over 13,400 parts, 4,600 sub-assemblies and all the seven major component assemblies of the aircraft will be done in India,only engines, landing gear and avionics will be provided by Airbus to be integrated at Vadodara plant which will have capacity of approximately 96 % of the work that Airbus does in Spain to produce the plane. It’s matter of strategic importance and pride that for the first time C-295 aircraft will be manufactured outside Europe and subsequently it will be exported to other countries and private players. State-run Bharat Electronics Ltd and Bharat Dynamics Limited will provide an indigenous electronic warfare suite to be fitted in all 56 aircrafts. The project will be capable of generating 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 the aerospace and defence sector, in addition, approximately 240 engineers will be trained at the Airbus facility in Spain.
Manufacturing of C295 aircraft in Vadodara will not only give strength to the military but it will also create an aerospace ecosystem, a milestone in India’s quest for becoming self-reliant in defence as GOI aims to achieve a turnover of USD 25 Bn including export of USD 5 Bn in Aerospace and Defence goods and services by 2025. Already India is exporting defence equipment to 75 countries with defence exports growth of 334% achieved in the last five years. Fact is India is the 3rd largest military spender in the world, with its defence budget accounting for 2.15% of the country’s total GDP. Government has also established two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, with Uttar Pradesh Defence Industrial Corridor (UPDIC) signing 69 MoUs with potential investment of Rs 10,545 crore and Tamil Nadu Defence Industrial Corridor (TNDIC) 42 MoUs having investment potential of Rs 11,359 crore. Such Government initiatives have reduced the expenditure on defence procurement from foreign sources to 36% from 46% of the overall expenditure in the last four years, a really big achievement by any standards. Make-I (Government Funded) and Make-II (Industry Funded)policies are already in place.
Success has no shortcuts but with so many incentives and all these initiatives already in place, time is not far away when India will become major international defence exporter.With all requisite parameters and kind of exposure Indian firms are getting as well as keeping in view talent pool of India, PM Modi’s dream of India becoming ‘Vishwa Guru’ is not far away now.
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