Mar 31, 2019
India concludes price negotiations to acquire 62 C295 transport aircraft
The MoD's Contract Negotiation Committee (CNC) concluded consultations with Tata Advanced Systems Limited (TASL) - which is in a joint venture (JV) with Airbus for the MTA programme - to procure the 62 platforms for around EUR2.8 billion (USD3.15 billion).
They said the aircraft deal - which would include 56 platforms for the IAF to replace the service's ageing fleet of Avro 748M transports, and six for the ICG - is expected to be signed after a new Indian government assumes office following general elections set to begin on 11 April.
The MTA programme envisages the direct import of 16 C295s and the local assembly/licence-building of the remaining 46 aircraft at a facility set up by the JV near Bangalore. In keeping with the 2013 MTA tender, 24 of these will be imported in kit form for local assembly and include a 30% indigenous content. The level of indigenous content is then expected to double to 60% in the remaining 22 platforms.
Delivery of the first locally assembled C295 is expected to begin within 60 months of the contract being signed, industry sources said.
Rahul Bedi janes