SOURCE: AFI
Hindustan Aeronautics Limited (HAL), India’s premier defence public sector undertaking, announced on Thursday, March 27, 2025, a significant amendment to its contract for the Light Combat Aircraft (LCA) Tejas Mk1 Final Operational Clearance (FOC) variant. Originally signed with the Indian Air Force (IAF) on December 23, 2010, the contract’s value has been revised upward from ?5,989.39 crore to ?6,542.20 crore, reflecting adjustments in the delivery timeline.
In a regulatory filing, HAL stated, “We wish to inform that the company has signed today an amendment to the LCA Mk1 FOC Contract dated 23rd December, 2010. The value of the contract has been revised from ?5,989.39 crore to ?6,542.20 crore, on account of revision in the delivery schedule.” While HAL did not elaborate on the specific reasons for the delay, industry observers point to challenges such as supply chain disruptions, integration of new systems, and the need for additional components as likely factors contributing to the rescheduling.
This amendment comes at a pivotal moment for HAL, as the Tejas program is poised to play a central role in modernizing the IAF’s fleet. With the air force’s squadron strength currently at 31—well below the sanctioned 42—the timely delivery of indigenous fighters like the LCA Mk1 is critical to addressing capability gaps, especially as older aircraft like the MiG-21 are phased out. The IAF has already operationalized two squadrons of the Tejas Mk1, with the No. 45 Squadron (“Flying Daggers”) and No. 18 Squadron based at Sulur, Tamil Nadu, flying the Initial Operational Clearance (IOC) and FOC variants, respectively.
The revised contract value of ?6,542.20 crore reflects not only the increased costs associated with the extended timeline but also HAL’s commitment to meeting the IAF’s evolving requirements. The additional ?552.81 crore will likely cover adjustments in production processes, labor, and material costs incurred due to the delay. This development follows a milestone earlier in the week when GE Aerospace delivered the first of 99 F404-IN20 engines to HAL for the Tejas Mk1A program, signaling progress in overcoming previous bottlenecks that had hampered engine supplies.
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