The Indian Air Force has inked a $22,000-crore contract with Airbus for 56 C-295 medium transport aircraft, according to the Ministry of Defence. The acquisition was approved a fortnight ago by the Cabinet Committee on Security, which is chaired by Prime Minister Modi.

The C-295s will take the place of the IAF’s ageing Avro-748 planes.

Under the ‘Make in India’ programme in the aerospace industry, Airbus Defence and Space and Tata Advanced Systems Limited (TASL) will work together to supply the Indian Air Force with new transport aircraft.

The first 16 aircraft will be delivered in flyaway condition by Airbus, with the remainder 40 being built in India by Tata Advanced Systems Limited (TASL). The replacement for the Avro has been in the works for over a decade.

In 2012, the defence acquisition council accepted the necessity (AoN) of replacing the Avro planes with 56 new planes. The council’s AoN is the first stage in buying military hardware in India, according to the country’s defence procurement laws. The Avro-748 has been in service since the early 1960s and is in desperate need of replacement.