Defence officials told that the proposal is expected to be taken up soon by the Defence Acquisition Council (DAC) for clearance.
The programme would see around 20 per cent of the planes joining the Indian Air Force in fly-away condition, while the rest of them would be manufactured in India with over 60 per cent indigenous content, defence officials told ANI.
The aircraft will be built in India through joint ventures between Indian companies and the original equipment manufacturers. Brazilian aerospace major Embraer is partnering with Mahindra Defence.
US defence giant Lockheed Martin has tied up with Tata, and the Russian side, led by Ilyushin, might tie up with Hindustan Aeronautics Limited (HAL).
The Indian Air Force already operates 12 C-130J Super Hercules planes in its fleet.
In addition, IAF is already working with Airbus on the C-295 transport aircraft, as around 70 of them are going to be inducted into the forces, with the majority of them getting made in India.
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