Prime Minister Narendra Modi, alongside Spanish Prime Minister Pedro Sanchez, officially opened the new C-295 aircraft manufacturing facility of Tata Advanced Systems Limited (TASL) in Vadodara, Gujarat. This facility represents India’s inaugural private-sector Final Assembly Line (FAL) for military aircraft, signifying a pivotal achievement in the nation’s quest for defence self-sufficiency. Defence Minister Rajnath Singh, who was also in attendance, celebrated the initiative as a “momentous day” for India’s aerospace industry, asserting, “The C-295 project stands as a remarkable success for the Indian private sector as it is the first undertaking of its nature where a complete military aircraft will be produced in India by a private entity.”
Overview of the C-295 Program
In 2021, India’s Ministry of Defence entered into a ₹21,935-crore contract with Airbus Defence and Space SA from Spain to provide 56 C-295 transport aircraft to replace the Indian Air Force’s outdated Avro-748 planes. As part of this agreement, 16 aircraft are to be delivered fully assembled from Spain, while the other 40 are set to be assembled locally in India at the newly established TASL facility in Vadodara. Officials have indicated that the first aircraft manufactured domestically in Vadodara is expected to be completed by September 2026, with all 40 units projected for delivery by August 2031.
The Vadodara facility is not only responsible for the assembly of the aircraft but is also anticipated to manage the entire production lifecycle, including component manufacturing, assembly, testing, and final delivery, with the potential to offer maintenance and upgrade services in the future. An official release from PM Modi’s office characterized the establishment as “a comprehensive ecosystem encompassing manufacture, assembly, testing, qualification, delivery, and maintenance throughout the entire lifecycle of the aircraft.”
“Aside from the aero-engine and avionics, which Airbus procures from other OEMs, the majority of the structural components will be predominantly produced in India. Of the 14,000 specialized parts utilized in one aircraft, 13,000 are expected to be manufactured in India from raw materials,” the official source conveyed to PTI.
Expanding Indigenous Production and Supply Chain
The Vadodara plant, a collaborative venture between Tata Advanced Systems and Airbus, will incorporate a significant amount of indigenous components, advancing India’s objective to decrease dependence on imported military hardware. Airbus has already pinpointed 37 local suppliers, with 33 of them classified as small and medium enterprises (SMEs), to produce various components of the aircraft. Out of the roughly 14,000 parts in each C-295 aircraft, nearly 13,000 are anticipated to be fabricated in India, progressively elevating the domestic content of each unit from an initial 48% to 75% by the time the final aircraft is produced.
In a report from NDTV, Air Marshal Sanjeev Kapoor (Retired) underscored the increasing Indian contribution to the defence sector, stating that “Airbus has shortlisted 37 industrial partners to assist with their program in Baroda… It is projected that by 2030, the indigenous component will rise to 78%. This enhancement in the Indigenous component will enable the Air Force to evolve, as we will become less reliant on OEM or any external agency for services or space.”
What are the advanced capabilities of the C-295?
The C-295 aircraft is engineered for tactical missions, boasting a transport capacity of 5-10 tonnes, and is set to succeed the Indian Air Force’s Avro-748 planes, which have been operational for many years. Featuring a rear ramp door and the ability to operate on semi-prepared surfaces, the C-295 is versatile enough for a variety of tasks, such as troop transport, paratrooper drops, and cargo deployment.
Moreover, all 56 aircraft will come equipped with locally developed Electronic Warfare systems produced by Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL), which will further enhance domestic defence manufacturing.
As per a PTI report, the initiative is also expected to significantly boost employment in the aerospace industry. Official sources indicate that Airbus’s manufacturing man-hours will gradually transition to India, beginning with 78% for the first five aircraft and reaching 96% for the remaining units. The Tata-Airbus facility is anticipated to create 600 direct high-skill jobs, over 3,000 indirect jobs, and an additional 3,000 mid-skill positions, totaling 42.5 lakh man-hours of labor.
Strategic shift towards self-reliance in Defence
India’s choice to manufacture the C-295 domestically is part of a larger strategy aimed at reducing reliance on foreign military equipment. Traditionally, India has depended significantly on defence imports, especially from Russia, its main arms supplier. However, supply chain disruptions stemming from global geopolitical issues, including the ongoing conflict in Ukraine, have underscored the necessity for greater self-sufficiency in defence manufacturing. Recognizing these changes, PM Modi remarked that the Tata-Airbus partnership “marks a crucial advancement toward establishing a domestic defence ecosystem that will bolster India’s strategic goals and stimulate the economy.”
The Indian Air Force has already incorporated six C-295 aircraft, which were delivered from Spain, into its 11 Squadron located in Vadodara. The final unit of the 16 Spain-delivered aircraft is anticipated to arrive by August 2025.
The facility, inaugurated by PM Modi and PM Sanchez, signifies India’s inaugural private-sector aircraft manufacturing capability and is set to become a key participant in the nation’s defence ecosystem. With the collaborative efforts of TASL and Airbus, India’s indigenous component in aircraft production is projected to expand further, as defence manufacturing expertise continues to transition to local production facilities.
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