Lockheed considers setting up India unit amid Three-Firm Race for cargo Aircraft deal

Lockheed Martin
Image Courtesy: Lockheed Martin

Lockheed Martin, a US aerospace company, is exploring the possibility of establishing a manufacturing line in India for its C-130J aircraft as it competes with Airbus and Embraer for a lucrative contract with the Indian Air Force (IAF) to supply medium transport aircraft (MTA). The IAF, under Prime Minister Narendra Modi’s third term, aims to accelerate its acquisition process for new transport aircraft. Currently, Lockheed Martin’s C-130J fleet of 12 aircraft supports various missions, including operations in Ladakh amid the ongoing India-China border standoff.

Lockheed Martin’s Vice President of Business Development, Anthony G Frese, expressed confidence in the C-130J’s performance, citing its high availability rate and successful track record in fulfilling missions. The competition involves Airbus with its A-400M and Embraer with the C-390 Millennium, both of which already have a presence in India’s defence sector. Airbus, in partnership with Tata Advanced Systems Limited (TASL), is implementing a project worth ₹21,935 crore to supply 56 C-295 aircraft to modernize the IAF’s transport fleet.

The IAF seeks to procure 40 to 80 new aircraft in the 18 to 30-tonne cargo capacity range to enhance its airlift capabilities. Lockheed Martin could potentially collaborate with TASL, with whom they already operate a joint venture in Hyderabad, specializing in C-130J empennages. This partnership underscores Lockheed Martin’s commitment to India’s defence manufacturing sector and aligns with the government’s Make in India initiative.

The final decision on the MTA procurement will follow the Defence Acquisition Council’s (DAC) acceptance of necessity (AoN), a crucial step in India’s defence procurement process. The IAF’s requirements include technology transfer, indigenisation potential, and the establishment of manufacturing and maintenance facilities in India. As the competition unfolds, the focus remains on selecting an aircraft that best meets IAF’s operational needs while bolstering India’s defence capabilities through enhanced self-reliance and technological advancement.