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India likely to finalize a $ 2.5 billion deal to acquire 56 transport aircraft for IAF | India News


NEW DELHI: India is likely to finalize a mega deal in the coming months to purchase 56 transport jets for the Indian Air Force at a cost of $ 2.5 billion, official sources said Tuesday.
The project will be implemented by aerospace giant Airbus together with an Indian entity, as it will be implemented within the broad framework of the Make in India initiative in the defense sector, they said.
According to the decisions, Airbus will supply 16 C-295 transport aircraft in flight condition, while 40 aircraft will be manufactured in India.
The aircraft acquisition process is almost complete and a final decision on the deal is likely to be made soon, a source said.
In a report, the Defense Ministry said that the case for the acquisition of 56 C-295s from Airbus with the participation of an Indian production agency for the manufacture of 40 aircraft in India is in the approval stage. A contract is likely to be signed in the near future.
“The case is the first of its kind that involves private companies and would prove to be a boost for our defense industry,” he said.
The government is acquiring the plane to replace the IAF’s Avro planes.
The Ministry of Defense has put the finishing touches on a number of long-pending procurement projects to boost India’s overall military capability.
Last month, the Defense Ministry approved the acquisition of Rs 28 billion worth of weapons and military equipment, including six aircraft with an airborne warning and control system, for the Indian Air Force.

Times of India