New Delhi: The Government of India has a landmark contract worth ₹62,370 crore with Hindustan Aeronautics Limited (HAL) for the supply of 97 Light Combat Aircraft (LCA) Tejas Mk-1A to the Indian Air Force (IAF).
The deal, one of the largest in the history of Indian defence aviation, is aimed at boosting indigenous manufacturing and addressing the shortage of fighter squadrons in the Air Force.
According to the Ministry of Defence, the order comprises 68 single-seat fighters and 29 twin-seat trainer variants. Deliveries are expected to commence in 2027-28 and will be completed over a six-year period. The new jets will join the earlier batch of 83 Tejas Mk-1A ordered in 2021, though that programme has faced delays.
The Tejas Mk-1A under the latest contract will feature significant upgrades including the indigenously developed Uttam Active Electronically Scanned Array (AESA) radar, the Swayam Raksha Kavach electronic warfare suite, and improved actuators.
The aircraft will also integrate advanced beyond-visual-range missiles and modern avionics. Officials said the jets will have over 64 percent indigenous content, with 67 new components and systems not present in earlier versions.
HAL is preparing to scale up its production lines, with the capability to produce over 24 aircraft annually. The state-run aerospace firm is also finalising a deal with US-based GE Aerospace for 113 F404-IN20 engines to power the new fleet. While indigenous content is increasing, India will still depend on foreign partners for some critical subsystems.
The earlier contract for 83 Tejas Mk-1A aircraft signed in 2021 has seen delays due to engine supply constraints, radar integration, and certification hurdles.
GE Aerospace has delivered only a few engines under that deal so far but has committed to increasing supplies in the coming months. HAL has assured the government that lessons from the past delays will help in smoother execution of the new order.
The contract is expected to create significant employment opportunities, generating nearly 11,750 direct and indirect jobs annually over the next six years. Around 105 Indian companies are already involved in manufacturing components for the LCA programme, strengthening the domestic defence ecosystem under the Aatmanirbhar Bharat initiative.
For the IAF, the additional 97 Tejas jets will help address its shrinking squadron strength, which has fallen below the sanctioned level of 42 squadrons. With the gradual phasing out of older MiG-21 and MiG-27 aircraft, the Tejas programme is seen as a critical element in maintaining operational readiness.
Defence analysts believe the deal demonstrates India’s long-term commitment to developing indigenous fighter aircraft capabilities, though timely execution remains a challenge.
Any delays in delivery could affect the Air Force’s modernisation plans, especially at a time of rising regional security concerns.
With this deal, HAL and the Indian Air Force have taken a significant step forward in the indigenisation of defence manufacturing, while reinforcing India’s capability to design, develop, and produce combat aircraft at scale.