The Cabinet Committee on Security (CCS) chaired by Prime Minister Narendra Modi on Wednesday approved the procurement of 70 HTT-40 basic trainer aircraft costing Rs 6,828 crore for the Indian Air Force.
Defence Minister Rajnath Singh said the aircraft will be supplied over a period of six years.
"The Cabinet Committee on Security (CCS) chaired by Prime Minister Shri @narendramodi has approved procurement of 70 HTT-40 Basic Trainer Aircraft at the cost of ?6,828.36 crores," Singh said on Twitter.
The defence ministry said the HTT-40, produced by state-run aerospace major Hindustan Aeronautics Ltd, is a turboprop aircraft designed to have good low-speed handling qualities and provide better training effectiveness.
Singh said the procurement decision will open new opportunities for hundreds of MSMEs (Ministry of Micro, Small and Medium Enterprises) and create thousands of jobs.
"It is a significant step towards strengthening India's self-reliance in defence," he said.
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The HTT-40 contains approximately 56 per cent indigenous content which will progressively increase to over 60 per cent through the indigenisation of major components and subsystems, according to the ministry.
"The HAL would engage Indian private industry, including MSMEs, in its supply chain. The procurement has the potential to provide direct employment to approx. 1,500 personnel and indirect employment for up to 3,000 people spread over more than 100 MSMEs," it said in a statement.
It said the acquisition of the HTT-40 provides a fillip to the Indian aerospace defence ecosystem and boosts efforts towards 'Aatmanirbhar Bharat' (self-reliant India).
This fully aerobatic tandem seat turbo trainer has an air-conditioned cockpit and modern avionics.
"The aircraft will meet the shortage of basic trainer aircraft of IAF for the training of newly inducted pilots. The procurement will include associated equipment and training aids including simulators," the ministry said.
"Being an indigenous solution, the aircraft is configurable for upgrades to incorporate the futuristic requirements of the Indian Armed Forces," it said.