The Defence Ministry on Monday cleared a proposal to procure 56 transport aircraft, at an estimated price of Rs. 12,000 crore for the Air Force to replace the ageing Avro planes.
At a meeting of the Defence Acquisition Council (DAC), headed by Defence Minister A.K. Antony, the proposal to issue a global tender was cleared, sources in the Ministry said.
The first 16 aircraft would be procured off-the-shelf from foreign vendors, who would have to partner with a local private or public sector firm.
The next 16 aircraft would have 30 per cent indigenous component and the remaining aircraft would have 60 per cent locally procured and produced items.
The IAF inducted Avro aircraft in the 1960s.
