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Defence deals worth Rs 4,444 cr cleared; Tata-Airbus proposal put on hold

The Defence Acquisition Council (DAC) on Wednesday deferred a decision on a joint bid of Tata Sons Ltd and Airbus for replacing Indian Air Force’s Avro transport fleet. The meeting, however, approved other proposals worth Rs 4,444 crore, including the purchase of four helicopters for survey vessels at Rs 2,324 crore.

The DAC could not arrive at a decision on a joint bid by Tata Sons Ltd and Airbus to replace the Indian Air Force’s Avro transport fleet, said sources. European consortium Airbus Defence and Space has made a joint bid with Tata Advanced Systems Ltd (TASL) for 56 medium-transport aircraft of IAF valued at Rs 20,000 crore (USD 3 billion).

The euro 14 billion (USD 17.8 billion) Airbus Defence has tied up with Tata Sons’ subsidiary (TASL) as its Indian production partner for the order. The bid is for 56 twin-turboprop tactical military aircraft, including 16 in fly-away condition from the Airbus Defence final assembly line and the remaining 40 to be built and assembled by TASL in Hyderabad.

The aircraft is in the six-eight tonne class, with a cruise speed of 800 kms per hour and a range of 2,500-2,800 kms. The IAF had floated the tender after the DAC had on July 19 cleared the proposal for manufacturing the 56 transport aircraft in the private sector, excluding state-run defence firm Hindustan Aeronautics Ltd (HAL), which built the Avro planes.
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