14 August 2012

India: Purchase of Transport Aircraft

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The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for procurement of 56 aircraft as replacement of Avro aircraft under 'Buy and Make' category on 23rd July 2012. 

The aircraft to replace Avro aircraft are proposed to be procured through the 'Buy and Make' route as per the Defence Procurement Procedure - 2011, with the stipulation that the Original Equipment Manufacturer (OEM) will select a private Indian Production Agency for manufacturing 40 aircraft in India. The estimated cost of the project is Rs.11,897crore. This will encourage development of the Indian private sector in aircraft manufacture. 

The deliveries of aircraft would commence within 24 months from the date of signing the contract and would be completed over a period of eight years. 

This information was given by Minister of Defence Shri AK Antony in a written reply to Shri A. Ganeshamurthi in Lok Sabha today.