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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

C295 and India’s aircraft industry

c295

Recently, PM laid the foundation stone for the C-295 transport aircraft manufacturing facility in Vadodara to be set up by Airbus Defence and Space and Tata Advanced Systems Limited (TASL).

Why is it making headlines?

  • This is the first time a private sector company would be manufacturing a full aircraft in the country.
  • This is a huge step forward for India in the global aircraft manufacturing domain.

What is the C-295MW transporter?

  • The C-295MW is a transport aircraft of 5-10 tonne capacity which will replace the legacy Avro aircraft in the Indian Air Force (IAF) procured in the 1960s.
  • It was originally produced by a Spanish aircraft manufacturer.
  • This company is now part of Airbus and the aircraft’s manufacturing takes place at Airbus’s plant in Spain.

Why c-295MW?

  • The C-295 has very good fuel efficiency and can take off and land from short as well as unprepared runways.
  • As a tactical transport aircraft, the C295 can carry troops and logistical supplies from main airfields to forward operating airfields of the country.
  • It can operate from short airstrips just 2,200 feet long and can fly low-level operations for tactical missions flying at a low speed of 110 knots.
  • The aircraft can additionally be used for casualty or medical evacuation, performing special missions, disaster response and maritime patrol duties.

A boost to domestic aircraft manufacturing

  • Over the last two decades, Indian companies, both public and private, have steadily expanded their footprint in the global supply chains of major defence and aerospace manufacturers.
  • They do supply a range of components, systems and sub-systems.

India’s collaboration with top firm

  • Boeing’s sourcing from India stands at $1 billion annually, of which over 60% is in manufacturing, through a growing network of 300+ supplier partners of which over 25% are MSME.
  • Tata in a joint venture (JV) with Boeing, manufactures aero-structures for its AH-64 Apache helicopter, including fuselages, etc.
  • It also makes Crown and Tail-cones for Boeing’s CH-47 Chinook helicopters.
  • Similarly, Lockheed Martin has joint ventures with TASL in Hyderabad which has manufactured crucial components for the C-130J Super Hercules transport aircraft.

How this has become possible?

  • The US is simplifying its export regulations for India, through a series of measures.
  • As US and India together pursue the Indo-Pacific strategy and are enhancing technology prowess.

Boost to India’s civil aviation sector

  • India has a much bigger footprint in civil aviation manufacturing than defence, in addition to being a major market itself.
  • Both Airbus and Boeing do significant sourcing from India for their civil programmes.
  • According to Airbus every commercial aircraft manufactured by them today is partly designed and made in India.
  • India now has world’s fastest-growing aviation sector and it is about to reach the top three countries in the world in terms of air traffic.
  • Another major growing area is Maintenance, Repair and Overhaul (MRO) for which India can emerge as the regional hub.

Conclusion

  • The private defence sector is still nascent and a conducive and stable regulatory and policy environment will be an important enabler.

 

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