New Delhi, India – London, UK 

– In a landmark moment for India’s defence self-reliance initiative, the Ministry of Defence (MoD) has officially signed a contract with state-owned Hindustan Aeronautics Limited (HAL) for the procurement of 97 advanced Tejas Mark 1A Light Combat Aircraft (LCA) for the Indian Air Force (IAF). The massive deal, valued at approximately ₹62,370 crore (around $7.5 billion), represents the largest single order ever placed for an indigenous fighter jet and provides a significant boost to the nation’s air combat capabilities and aerospace ecosystem.

Headline Points

 * Record Indigenous Order: The contract for 97 Tejas Mark 1A jets is the largest procurement order in the history of India’s indigenous fighter jet program.

 * $7.5 Billion Value: The deal is valued at ₹62,370 crore (excluding taxes), underscoring the government’s commitment to self-reliance in defence.

 * Phased Retirement of MiG-21: The new Tejas jets are designated to primarily replace the IAF’s aging fleet of Soviet-era MiG-21 fighter jets, which are being phased out.

 * Boost to Indigenisation: The Mark 1A variant features an indigenous content of over 64% and includes the integration of advanced homegrown systems like the UTTAM AESA Radar and the Swayam Raksha Kavach electronic warfare suite.

 * Delivery Timeline: Deliveries of the new aircraft are scheduled to begin in 2027-28 and will be completed over a period of six years.

A Bold Leap for ‘Aatmanirbhar Bharat’

The formalisation of the agreement, which was approved by the Cabinet Committee on Security (CCS) in August, is a crucial step towards bolstering the Indian Air Force’s fighter squadron strength, which currently stands well below its sanctioned level. The Tejas Mark 1A is touted as the most advanced variant of the Light Combat Aircraft, designed to undertake critical air defence, maritime reconnaissance, and strike roles, making it a potent multi-role platform.

“This massive deal for the Tejas Mark 1A is not merely a contract; it is a powerful statement of the success of our ‘Aatmanirbhar Bharat’ (Self-Reliant India) mission in the defence sector,” said a Ministry of Defence official. “The aircraft will feature 67 new items, over and above the previous contract, with a core focus on integrating key indigenous technologies.”

Key among the upgrades is the integration of the UTTAM Active Electronically Scanned Array (AESA) Radar, developed by India’s Defence Research and Development Organisation (DRDO), and the Swayam Raksha Kavach electronic warfare suite. These domestic systems will significantly enhance the operational capabilities and survivability of the fighter jet, reducing dependence on foreign suppliers for critical technologies.

Replacing the Legacy Fleet

The urgency for the procurement is underscored by the imminent and necessary retirement of the venerable but accident-prone MiG-21 ‘Bison’ fighter jets. The phasing out of these legacy platforms, after decades of service, necessitates a rapid induction of modern fighters to maintain the IAF’s combat readiness. This order for 97 jets (comprising 68 single-seat fighters and 29 twin-seat trainers) builds upon the earlier 2021 contract for 83 Tejas Mark 1A aircraft, bringing the total order for this variant to a robust 180 jets.

While the new contract is a massive win for HAL, the public sector unit faces the challenge of ramping up production and addressing delays that have affected the delivery timeline of the earlier batch of 83 aircraft. HAL has cited delays in the supply of the GE F404-IN20 engines from the US as a primary bottleneck. However, HAL is now committing to progressively increasing its production rate to meet the targets of both contracts, having activated a third production line in Nashik in addition to its two existing lines in Bengaluru.

The project is expected to have a profound economic impact, generating nearly 11,750 direct and indirect jobs annually over the six-year duration of the contract and strengthening the vendor base of over 105 Indian companies directly involved in manufacturing detailed components. This injection of capital and technology into the domestic aerospace sector positions India as a rapidly emerging player in global fighter jet manufacturing.