Lockheed Martin and Tata Advanced Systems Ltd. announced a 'teaming agreement' on Tuesday to expand engagement through the C-130J Super Hercules tactical airlifter project.
The firms see an opportunity in India's requirement of military transport planes.
The announcement comes weeks after Defence Minister Rajnath Singh's visit to the US, during which both sides resolved to boost overall defence ties further.
The agreement will provide for expanding C-130J manufacturing and assembly in India to produce aircraft for the IAF's medium transport aircraft programme, which will be subject to the US and Indian government approvals, according to the two defence majors.
The Indian Air Force is looking to procure 80 medium transport aircraft to replace its ageing fleets of AN32 planes.
Lockheed Martin's C-130J, Embraer Defense and Security's C-390 Millennium, and Airbus Defence and Space's A-400M aircraft have emerged as top contenders for the mega contract. The IAF is currently operating 12 C-130J aircrafts.
According to Lockheed and Tata Advanced Systems, this announcement marks a significant step in enhancing India's defence and aerospace capabilities. They said it also deepens Indo-US strategic ties.
The Lockheed-Tata agreement is meant to facilitate a framework for the firms to work together on future potential business opportunities that include establishing a maintenance, repair and overhaul facility in India to support IAF's existing fleet of C-130Js as well as other global Super Hercules fleets.
"Collaborating with Lockheed Martin on the C-130J platform proposition for IAF's MTA project is a milestone for Tata Advanced Systems," said Sukaran Singh, chief executive officer and managing director of Tata Advanced Systems.
"The current announcement is also significant as it marks the entry of Tata Advanced Systems into the defence MRO space in India for large aircraft platforms," he added.
According to Singh, the pact will also help in having a deeper relationship between the two companies adding to the aerostructure work by Tata Advanced Systems for Lockheed Martin platforms.
The C-130J Super Hercules is a tactical airlift aircraft providing a unique mix of versatility and performance to complete any mission.
It is the current variant of the C-130 Hercules and is the airlifter of choice for 26 operators in 22 nations.
The two companies said that Lockheed Martin will continue to build C-130Js for the US government and other global operators at the existing Super Hercules production facility in Marietta, Georgia in the US.
Lockheed Martin will establish additional production and assembly capacity in India, if awarded the medium transport aircraft contract, the statement said.
"The C-130J is known as the world's workhorse, not just for its large global presence, but also for its international supply chain partners including the single source provider of empennages—Tata Lockheed Martin Aerostructures Limited in Hyderabad," said Rod McLean, vice president and general manager of the Air Mobility and Maritime Missions line of business at Lockheed Martin.
"This teaming agreement between Lockheed Martin and Tata Advanced Systems further demonstrates Lockheed Martin's commitment to a self-reliant India and the degree of confidence that exists in our relationships with our partners in India and the Indian industry at large," he said.
The IAF is actively seeking to acquire up to 80 medium transport aircraft and had issued a request for information or initial tender last year.
Lockheed Martin responded to the RFI as the C-130J-30 Super Hercules is ideally suited to meet the requirements, the statement said.
The global C-130J fleet spans 27 operators in 23 nations. More than three million flight hours have been logged by 545-plus C-130Js in support of 19 different mission requirements, including critical worldwide search and rescue, peacekeeping, combat delivery, maritime patrol, special operations, aerial refuelling and commercial cargo transport, according to Lockheed Martin.
Lockheed Martin and Tata Advanced Systems have a long-standing partnership through the Tata Lockheed Martin Aerostructures Ltd. joint venture.
Established in 2010, TLMAL focuses on complementing India's 'Make in India' objectives and has the distinction of being the single global source of C-130J empennage assemblies included on all new Super Hercules aircraft produced in the US.
To date, TLMAL has manufactured more than 220 C-130J empennages, according to the company.
(With Inputs From PTI)