The Cabinet Committee on Security (CCS) has approved a major deal to procure 56 twin-turboprop C-295 aircraft for the Indian Air Force from Airbus Defence. While 16 aircraft will be brought in a flyaway condition from Spain over the next 48 months, 40 will be manufactured in India.

The deal is said to be worth at least Rs 21,000 crore. The C-295 aircraft will replace the IAF’s aging Avro fleet.

The 40 aircraft will be manufactured in India over a 10-year period by the aerospace major as part of a consortium with Tata Consortium, according to the Defence Ministry. According to government sources, this is the first time a private company will be manufacturing military aircraft in India. All aircarft will be fitted with indigenous warfare equipment as well.

The ministry said the project will give a boost to the aerospace ecosystem in India wherein several MSMEs spread over the country will be involved in the manufacturing of parts of the aircraft.

A large number of detail parts, sub-assemblies and major component assemblies of aero structure are scheduled to be manufactured in India.

"The programme will act as a catalyst in employment generation in the aerospace ecosystem of the country and is expected to generate 600 highly skilled jobs directly, over 3000 indirect jobs and an additional 3000 medium skill employment opportunities with more than 42.5 lakh man-hours of work within the aerospace and defence sector of India," the ministry said.

--With text inputs from PTI