NEW DELHI – A consortium formed by Airbus and Indian manufacturer TATA has concluded negotiations with the Indian government which will purchase 56 C295 military transport aircraft.
The planes by the European aeronautical group had been valued early on in negotiations in 2015 at around $2,340 million.
“The commercial negotiations are finished and are waiting for a clearance of the Cabinet Committee on Security. (CCS),” a source close to the negotiations that requested anonymity told EFE on Friday.
The CCS is an apparatus of the Indian Government headed by Prime Minister Narendra Modi.
Although the source did not specify the price that had been agreed for the airplanes the sales process has been estimated at some $2,340 million, according to data Indian government sources had provided to EFE in 2015.
“The medium transport aircraft contract for the 56 C295 is progressing as per the Government of India (Ministry of Defence) guidelines and requirements,” an Airbus spokesman in India said to EFE requested anonymity.
The Defense Acquisition Council (DAC) of India gave the green light to the consortium formed by Airbus and Tata in May 2015 to open negotiations exclusively.
The Asian nation, one of the largest buyers of weapons in the world, intends to replace its AVRO (twin-engine turboprop freighters from the United Kingdom originally) military transport planes with the C295s.
The chosen company will build the first 16 aircraft in Seville, Spain, and the remaining 40 will be produced in India in association with the local TATA Advanced Systems group.