Gujarat lands mega Rs 22000 crore project with Tatas and Airbus

Gujarat lands mega-Rs 22,000-crore project with Tatas and Airbus

Gujarat lands mega-Rs 22,000-crore project with Tatas and Airbus

The new C-295 transport aircraft will replace the Indian Air Force’s aging Avro aircraft.

New Delhi:

Gujarat has landed a huge new deal – Tata and Airbus will make transport planes for the military in Prime Minister Narendra Modi’s home state. The cost of the project amounts to a whopping 22,000 rupees or 2.66 billion dollars.

“This is the first project of its kind in which a military aircraft is manufactured in India by a private company. The total cost of the project is Rs 21,935 crore. The aircraft can also be used for civilian purposes,” said Defense Minister Dr. Ajay Kumar.

The production facility will be inaugurated by the Prime Minister in Vadodara on Sunday. The new project, which promises thousands of jobs, comes as Gujarat prepares to vote for its next government.

In September, Gujarat defeated Maharashtra and secured a $19.5 billion investment that will see chips (semiconductors) manufactured by a joint venture between Vedanta Ltd and Taiwan’s Foxconn. Their facilities will be built near Ahmedabad with significant electricity subsidies and other government incentives and are expected to create over 100,000 jobs.

The Tata Airbus plan is seen as a significant win for the prime minister’s Make-In-India campaign to reduce the country’s reliance on purchasing onboard military technology and equipment.

The center approved the purchase of 56 transport aircraft from Airbus last month. “As part of the contract, 16 aircraft will be delivered in airworthy condition and 40 will be manufactured in India,” the defense minister said today. “This is the first project of its kind in which a military aircraft is manufactured in India by a private company,” he said.

According to an official statement, the first 16 flying or operational aircraft are to be received between September 2023 and August 2025. The first aircraft manufactured in Gujarat is expected in September 2026.

The new C-295 transport aircraft will “replace the Indian Air Force’s aging Avro aircraft,” the government said. “It has a rear ramp door for quick response and dropping troops and cargo. Short takeoffs/landings from semi-prepared surfaces is another of its characteristics. The aircraft will bolster the IAF’s logistical capabilities,” the statement said.

(With contributions from agencies)

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