Defence Ministry signs Rs 62,370-cr deal with HAL for 97 Tejas Mk-1A jets

New Delhi: The Ministry of Defence on Thursday finalised a Rs 62,370 crore contract with Hindustan Aeronautics Limited (HAL) for the supply of 97 Tejas Mk-1A light combat aircraft (LCA) to the Indian Air Force (IAF), marking one of the largest indigenous defence procurement projects in recent years.

The agreement, cleared by the Cabinet Committee on Security (CCS) headed by Prime Minister Narendra Modi last month, will see deliveries beginning in 2027-28. According to officials, HAL will complete the supply of the aircraft over a six-year period.

“The Ministry of Defence signed a contract with Hindustan Aeronautics Limited for procurement of 97 Light Combat Aircraft Mk-1A, including 68 fighters and 29 twin-seaters, along with associated equipment for the Indian Air Force, at a cost of over Rs 62,370 crore (excluding taxes),” an official statement said.

This is the second major contract between the ministry and HAL for Tejas jets. In February 2021, the government approved a Rs 48,000 crore order for 83 Mk-1A variants. Compared to that deal, the latest order incorporates 67 additional items to enhance the aircraft’s capabilities, raising the indigenous content to more than 64 per cent.

The Mk-1A variant will replace the IAF’s ageing fleet of MiG-21s, which will be formally retired on Friday. “The LCA Mk1A is the most advanced variant of the indigenously designed and manufactured fighter aircraft and will serve as a potent platform to meet the operational requirements of the IAF,” the ministry said.

The aircraft will be equipped with advanced systems developed in India, including the Uttam Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach electronic warfare suite, and indigenous control surface actuators. Officials noted that these upgrades reinforce the government’s Aatmanirbharta (self-reliance) initiative in defence manufacturing.

Beyond military capabilities, the deal is expected to provide a major boost to the domestic aerospace industry. The ministry said nearly 105 Indian companies are directly engaged in manufacturing components for the Tejas project, and the production process is projected to create about 11,750 direct and indirect jobs annually during the six-year delivery schedule.

The contract falls under the “Buy (India-IDDM)” category of the Defence Acquisition Procedure 2020, which mandates procurement of products that are designed, developed, and manufactured indigenously.

The Tejas is a multi-role fighter designed to perform in high-threat environments, capable of executing air defence, strike, and maritime reconnaissance roles. The IAF currently operates 31 fighter squadrons, well below the sanctioned strength of 42. The induction of the new Tejas aircraft is expected to address this gap and significantly enhance the force’s combat preparedness.