A consortium led by the Tata group and European aerospace major Airbus Defence and Space will manufacture the C-295MW transport aircraft for the Indian Air Force in Gujarat, the defence ministry said on Thursday.

The cost of the project is Rs 21,935 crore. Prime Minister Narendra Modi will lay the foundation stone of the transport aircraft manufacturing project at Vadodara on October 30, the ministry said.

Airbus Defence and Space and Tata Advanced Systems Limited will jointly execute the project to equip the force with the transport aircraft under the Make in India initiative in the aerospace sector.

Addressing a media conference on Thursday, defence secretary Ajay Kumar said that as part of the contract, 16 planes would be delivered in flyaway condition and 40 would be manufactured in India.

This is the first project in which a military aircraft will be manufactured in India by a private company and the aircraft can be used for civilian purposes as well, he said.

The first 16 fly-away aircraft are scheduled to be received between September 2023 and August 2025. The first Made in India aircraft is expected from September 2026.