Tata, Airbus ink deal to make H125 single-engine choppers in India

The Tata-Airbus deal to manufacture the H125 single-engine helicopter is expected to address the significant demand for such helicopters in India. (Representational image)

Airbus and the Tata group have signed an agreement to jointly manufacture European aircraft maker's H125 single-engine helicopters and set up a Final Assembly Line (FAL) for commercial use in Gujarat's Vadodara.

The FAL spread over 36 acres will be ready by mid-2024 and operations will start by November 2024. The FAL will use parts produced in Hyderabad at Airbus' Main Constituent Assembly (MCA) line and will be shipped to Vadodara for the final assembly.

As part of the deal, they will also make at least forty C-295 transport aircraft at the Vadodara facility, which would be overseen by Tata Advanced Systems Ltd (TASL).

Foreign Secretary Vinay Kwatra on January 26 announced that India and France have reached agreements on a defence-industrial roadmap and a defence space partnership.

The deal was signed during French President Emmanuel Macron's state visit to India, he said.

Similarly, Tata Sons Chairman N. Chandrasekaran said that the Tata Group is delighted to set up India’s first helicopter assembly facility in the private sector.

"This facility will have the final assembly line in partnership with Airbus for the world’s bestselling Airbus H125 single-engine helicopter for the Indian as well as export markets," Chandrasekaran said.

The industrial partnership between Tata and Airbus for the production of H125 choppers, with a significant focus on indigenous and localisation components, signifies a joint effort in the aerospace and defence sector.

The growing ties between France and India, particularly in defence, nuclear energy, and space, have contributed to the strengthening of diplomatic relations.

In 2023, Modi attended the Bastille Day celebrations in France during which plans for additional submarine purchases and Rafale fighter jets were unveiled.

The Tata-Airbus H125 deal is expected to address the growing demand for such helicopters in India, which spans various sectors and also includes interest from high-networth individuals (HNIs) and applications for transporting goods and responding to medical emergencies.

The H125 produced in India is expected to catalyse the use of helicopters in the country, Airbus said in a statement.

"The multi-mission H125 helicopter will revolutionise passenger and goods transportation and will also be used for segments such as emergency medical services (HEMS), disaster management, law enforcement, tourism and aerial work missions," Airbus said.

The H125 is also expected to contribute to the Government of India’s regional connectivity scheme – Ude Desh ka Aam Naagrik (UDAN) which will further promote the tourism sector in the country.

Reports suggest an immediate demand for up to 800 choppers, pointing to the market potential for this type of aircraft in India.

The foundation stone of the Tata-Airbus facility was laid by Modi in 2023 , marking India's entry into a select group of around a dozen nations with the capability to produce C-295 transport aircraft. The project is expected to significantly support the government's 'Make In India' initiative.

The facility is part of a Rs 21,935-crore deal announced a year ago.

Airbus and TASL have multiple agreements in place. TASL recently announced an agreement to manufacture and supply components to Airbus for commercial jets, including the A320 and A350.

Last year Jorge Tamarit, head of C-295 India programme, Airbus had said that work is under way for setting up the Final Assembly Line (FAL) at Vadodara in partnership with Tata Advanced Systems Limited (TASL).

“The FAL in Vadodara will be ready by mid-2024 and start production by November 2024,” Tamarit had said last year.

The first aircraft manufactured in India would be delivered in September 2026.

The first C-295 transport aircraft manufactured by Airbus for the Indian Air Force at Seville, Spain is scheduled to be was delivered in September 2023 and the second C-295 will be delivered in May 2024 followed by seven aircraft in 2024 at the rate of one per month.

In September 2021, the Defence Ministry signed a Rs 22,000-crore deal with Airbus and Space S.A., Spain, for procurement of 56 C-295MW transport aircraft to replace the Avro aircraft in service with the IAF.

As per the contract, 16 aircraft would come in fly-away condition, manufactured at the Airbus facility in Seville, and 40 would be manufactured in India by Airbus jointly with TASL.

The C-295 has a capacity of 9 tonnes and can carry up to 71 troops or 50 paratroopers. Eventually, IAF will become the largest operator of the C-295.