Defence Minister Rajnath Singh on Sunday said the laying of foundation stone of a manufacturing facility in Gujarat's Vadodara city for C-295 transport aircraft production for the Indian Air Force was a milestone in the country's journey towards self-reliance in the defence sector.

Singh was speaking before Prime Minister Narendra Modi laid the foundation stone of the upcoming aircraft manufacturing facility in Vadodara.

The aircraft will be produced by a consortium of European aerospace major Airbus and the Tata Group.

It is the first project of its kind in which a military aircraft will be manufactured in India by a private company.In September last year, India sealed a Rs 21,935 crore deal with Airbus Defence and Space to procure 56 C-295 aircraft to replace the IAF's ageing Avro-748 planes that entered service in the early 1960s.

Rajnath Singh said for the first time in the country, a private player is setting up a facility to manufacture aircraft.

"This is definitely a moment of pride for the entire country. The foundation stone is being laid by our prime minister. This is not merely a foundation stone, but it is a milestone in the country's journey towards self-reliance in the defence sector," he said.

The defence minister congratulated the Tata Group, Airbus and everyone else associated with the project.Singh said the C-295 aircraft to be built here will have superior capabilities and global standards.

"These state-of-the-art and modern transport aircraft will drastically increase logistical capabilities of the Indian Air Force. It is also a matter of pride that all the 56 aircrafts will be fitted with indigenous warfare suits, produced by Bharat Electronics Limited and Bharat Dynamics Limited," ge said.

The minister said hundreds of MSMEs from across the country will also provide parts for manufacturing these aircraft.

The facility is an example of how private players and defence public sector undertakings (PSUs) can fulfil the requirements of the armed forces through collaborative efforts, he said.

"I am confident that the Defence Ministry's efforts to boost domestic manufacturing will not only fulfil the requirements of our armed forces, but also make India a net exporter of defence equipment and platforms," Singh said.

On the occasion, Singh termed PM Modi as a "visionary statesman" for taking decisions by keeping in mind not just the present requirements, but also the country's future needs.