Government clears Airbus-TATA bid to replace ageing IAF fleet

The government tonight cleared the lone bid of Airbus-TATA consortium for replacing Indian Air Force's fleet of ageing Avro transport aircraft for Rs 11,930 crore besides approving Russia's offer to build Kamov Ka-226T helicopters under 'Make in India' initiative.

The Defence Acquisition Council (DAC), which met here, also cleared the proposal to convert two Boeing 777-300 ER for VVIP travel, defence sources said.

Other major proposals cleared in the meeting, chaired by Defence Minister Manohar Parrikar, included six new BrahMos supersonic cruise missile systems for the Indian Navy worth Rs 2,700 crore and acquisition of 145 pieces of M777 Ultra-Light Howitzers from the US under a government to government deal.