India Signs $3 Billion Deal With Spain's Airbus to Receive 56 C-295 Military Transport Aircraft

C-295MW transport aircraft will replace the Indian Air Force's vintage HS 748 Avro of British origin, which has been in service for six decades. The Indian Air Force will deploy these aircraft along the border with China and the Indian Ocean.

The Indian Air Force (IAF) will receive 56 Airbus C-295 military transport aircraft from Spain by October 2031 as the Indian Defence Ministry signed a $3-billion contract with Airbus on Friday in New Delhi. The Defence Ministry dubbed it a significant step towards modernisation of the IAF's transport fleet.

Contract signed between #MinistryOfDefence and @AirbusDefence &Space, Spain for procurement of 56 C-295 transport aircraft for the #IAF@rajnathsingh @adgpi @PIB_India @PIBHindi @indiannavy @IAF_MCC @drajaykumar_ias @AjaybhattBJP4UK @IndiainSpain pic.twitter.com/YqgvAYKWHA

— A. Bharat Bhushan Babu (@SpokespersonMoD) September 24, 2021

According to the agreement, 16 aircraft will be delivered straight to the Indian Air Force in flyway condition from Spain by October 2025. Tata Group will manufacture the remaining 40 aircraft at its Indian facility and give them to the Indian Air Force by 2031. After completion of the delivery, the subsequent aircraft manufactured in India may be exported to countries cleared by the government of India.

As per the Indian Defence Ministry, the C-295MW aircraft has a 5-10 tonne capacity with a rear ramp door for quick reaction and para-dropping of troops and cargo.

"All fifty-six aircraft will be installed with indigenous Electronic Warfare Suite...The aircraft will give a major boost to [the] tactical airlift capability of [the] IAF, especially in the Northern and North-Eastern sector [China] and Andaman & Nicobar Islands", the ministry said.

The Indian Air Force's plan to replace the ageing Avro transport aircraft has been delayed for various reasons, including squeezed budgets and single-bidder situations. In 2014, despite tenders sent to several companies by India, including Lockheed-Martin, Saab, Alenia Aeronautica, Ilyushin, and Embraer, the only incoming bid was from the Airbus-Tata partnership, proposing the C295.