The Indian Ministry of Defence (MoD) has concluded the cost negotiations with Airbus and its Indian partner Tata for the purchase of 62 Airbus C-295 transport aircraft, The Hindu reported citing a senior official.
Out of the 62 aircraft, 56 are for the Indian Air Force (IAF) to replace its fleet of aging Avro 748M transport aircraft. The remaining six aircraft are for the Indian Coast Guard (ICG) to be used for maritime patrol missions.
The procurement plan, worth around $3 billion, will be now submitted to the Cabinet Committee on Security (CCS) for clearance, which is expected in the next few months.
Airbus has formed a joint venture with India’s Tata Advanced Systems Limited (TASL) for the program. According to the procurement plan, 16 C295s will be directly imported from Airbus facility in Europe while the remaining 46 will be locally assembled/license-built in India at the JV facility near Bangalore.
The delivery of the first locally assembled C295 is expected to begin within 60 months of the contract being signed.