This story is from April 7, 2008

Govt plans aircraft making with Airbus

Saurabh Sinha / TNN / Apr 7, 2008, 00:28 IST

Share

AA

Text Size

Small
Medium
Large

With China managing to attract both Boeing and Airbus to set up manufacturing facilities there, India is now pulling all stops to make a beginning with the European major.

NEW DELHI: The aviation boom in India could soon move to the next level of aircraft production. With China managing to attract both Boeing and Airbus to set up manufacturing facilities there, India is now pulling all stops to make a beginning with the European major.
According to highly placed sources, the government is of the view that offset (benefit from a deal) arising out of purchases from European Aeronautic Defence and Space Company (EADS) can be used for putting up assembly units for medium size civil transport aircraft.

A beginning could be made with up to 70-seater ATRs.
''This can be done under licence of the original manufacturer by either a government agency or a venture with private players,'' said sources.
The erstwhile Indian Airlines had placed an order for 43 aircraft of Airbus (a division of EADS) worth $2 billion.

As offset, Airbus was to invest Rs 200 crore for an MRO facility here. In addition, EADS also proposed an investment of Euro 2 billion over 15 years.
The aircraft assembly venture with EADS in India is being planned as an offset for these and future purchase orders that may be placed with the European major. EADS is keen that the government does a re-look at its decision to cancel the $600-million deal to buy 197 helicopters for Army's aviation wing from its chopper division, Eurocopter. This deal was cancelled when government found certain discrepancies in field trial process. With India keen on an aircraft manufacturing tieup with EADS, a ''mutually beneficial'' deal could be worked out.

Aircraft manufacturing was with in the Defence Ministry's domain before 1987 when the sector was opened to the private sector. But no real progress has so far been made on developing an indigenous passenger aircraft.
The Prime Minister's Office is particularly keen that India should not get left behind in passenger aircraft manufacturing.
The government wants to make a start with European Aeronautic Defence and Space Company on small turboprops as the concept of regional airlines has been introduced and such players would use mostly ATRs to provide connectivity within different regions.

End of Article

FOLLOW US ON SOCIAL MEDIA