Vadodara transport aircraft manufacturing facility will have immense benefits for MSMEs: PM Modi

Ease of doing business for MSMEs: Laying the foundation stone of the C-295 transport aircraft manufacturing facility, which is the first of its kind in India’s private sector, in Vadodara, Gujarat, Prime Minister Narendra Modi said MSMEs will have immense benefits as it (the facility) strengthens the Make in India initiative and country’s aircraft manufacturing capabilities. Defence MSMEs in India cater to export markets, DPSUs, Ordinance Factory Board and private OEMs as Tier-II, III, and IV suppliers currently.

“I have been told that more than 100 MSMEs are linked to this project. The facility will also be able to take export orders from other countries in future. This means our ‘Make in India, Make for Globe’ motto will be strengthened with this project,” PM Modi said on Sunday.

According to the government, over 125 MSME suppliers have been identified by a consortium of Tata companies including Tata Advanced Systems Limited (TASL) and Tata Consultancy Services (TCS). The consortium along with European aerospace company Airbus will make 40 C-295 transport aircraft for the Indian Air Force. The announcement was made by Defence Secretary Ajay Kumar at a press conference on October 27.

The government had last September approved the procurement of 56 C-295MW transport aircraft. This included 16 aircraft to be delivered in flyaway condition between September 2023 and August 2025.

“This is the first time that such a huge investment is being made in India’s defence aerospace sector. The aircrafts made won’t only support our defence forces, it will also aid the development of a new ecosystem for aircraft manufacturing in India,” Prime Minister Modi added.

The C-295 aircraft will be fitted with an indigenous Electronic Warfare Suite made by defence electronics equipment manufacturer Bharat Electronics and missile systems manufacturer Bharat Dynamics. “Hundreds of MSMEs from across the country will be a part of this project. It is a shining example of meeting the requirements of the armed forces with collaborative efforts of the private sector and defence public sector undertakings (DPSUs),” Defence Minister Rajnath Singh said at the foundation stone laying ceremony.

The annual procurement of defence-related goods and services from micro and small enterprises including SC-ST and women enterprises by the Ministry of Defence in FY22 had increased to Rs 5,760 crore from Rs 4,303 crore in FY21, and Rs 3,531 crore in FY19 even as it dropped to Rs 3,204 crore during FY20, according to the data shared by Minister of State for Defence Ajay Bhatt in a written reply to a question in Rajya Sabha in August this year.