8NOVEMBER, 2024Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated the Tata Aircraft Complex in Vadodara, Gujarat, marking a milestone for India's defense self-reliance with the production of India's first privately built military aircraft, the C-295. This manufacturing facility, part of India's Atmanirbhar Bharat initiative, is the country's first private-sector Final Assembly Line (FAL) for military aircraft.The project stems from a 21,935-crore agreement signed in 2021 between India's Ministry of Defence and Airbus Defence and Space, Spain, to replace the Indian Air Force's aging Avro-748 fleet with 56 C-295 transport aircraft. Under this deal, 16 aircraft will be fully assembled in Spain, while the remaining 40 will be assembled locally at the Tata Advanced Systems Limited (TASL) facility in Vadodara. The first locally assembled C-295 is expected by September 2026, with all units delivered by August 2031. Considering the market for aircraft manufacturing indusry, it was worth $296.6 billion in 2021 and is forecasted to hit $476.4 billion by 2031, with a 5 perent annual growth rate from 2022 to 2031.PM Modi emphasized the importance of the C-295 manufacturing facility in strengthening India-Spain relations and furthering the 'Make in India, Make for the World' mission, underscoring its role in India's global manufacturing goals. TOP STORIESSTEELMAKERS FACE SURPLUS INVENTORY AS A CONSEQUENCE OF STEEL IMPORTSIndian steelmakers face inventory build-up despite increased domestic steel consumption due to a surge in steel imports, creating challenges for the industry. The steel ministry is actively monitoring the situation as inventory levels of 14 million tonnes (mt) at the end of September show only slight improvement from last year. According to data, steel inventory value since the beginning of 2024-25 is estimated at Rs 89,000 crore.While domestic steel consumption grew by 13.65 percent to 72.82 mt between April and September, a 41 percent increase in imports to 4.7 mt coupled with a 35.9 percent drop in exports to 2.3 mt have exacerbated inventory levels, according to ICRA Limited. This situation is driven by higher Chinese exports and excess monsoon rainfall impacting construction demand.Sector experts also note that domestic steel output rose by 5.1 percent to 70.86 mt in April-September, further contributing to the steel surplus in the market. To address this, import levels must be managed and domestic steel demand revitalized, particularly as weather conditions improve."Higher imports and lower exports have resulted in net import of about 2.4 mt in the first half of the current fiscal. So, while the consumption rate is high, higher net import led to similar inventory levels," said Sumit Jhunjhunwala, sector head of corporate ratings at ICRA Limited. INDIA'S MILITARY AIRCRAFT MANUFACTURING DREAM TAKES FLIGHT
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