The Indian government has approved a whopping $2.6 billion deal with Airbus Defence and Space S.A. Spain to buy 56 C-295MW transport aircraft, replacing Indian Air Force's aging Avro transport planes inducted some 60 years ago.  The contract will involve the Tata-led consortium manufacturing most of the units, according to Press Information Bureau (PIB)

Sixteen C-295MWs will be delivered in flyaway condition from Spain within 48 months of signing the contract while the Tatas will make 40 of them within 10 years, according to the PIB release.

“This is the first project of its kind in which a military aircraft will be manufactured in India by a private company. All fifty-six aircraft will be installed with indigenously developed  electronic warfare suites. The project will give a boost to aerospace ecosystem in India wherein several MSMEs (micro,medium and small enterprises) spread over the country will be involved in manufacturing of parts of the aircraft," the Defence Ministry statement said. 

The C-295MW has 5-10 tonne capacity and boasts contemporary technology with a rear ramp door for quick reaction and para dropping of troops and cargo, the release said.  

It will also spur the Modi government's Atmanirbhar (self-reliance) campaign, offering a unique opportunity for India's private sector to enter the technology-intensive and highly competitive aviation industry, the government statement said.

Airbus is the leader of Spain’s aerospace and defence sector, generating 56.4% of the nation’s revenues in these areas through the work of some 12,700 employees, the company's website said.