SOURCE: AFI
In a significant step toward strengthening the Indian Air Force (IAF) and advancing India’s self-reliance in defence manufacturing, the Indian government is poised to approve a ?67,000 crore ($7.8 billion) deal for the procurement of 97 additional Tejas Mk-1A fighter jets in the financial year 2026-27. This landmark contract, expected to be finalized by the Cabinet Committee on Security (CCS), will further cement the role of the indigenously developed Light Combat Aircraft (LCA) Tejas as the backbone of the IAF’s fighter fleet.
According to MoneyControl, The deal, which follows a ?48,000 crore contract signed in February 2021 for 83 Tejas Mk-1A jets, will bring the total number of Tejas variants ordered by the IAF to 180, significantly enhancing its combat capabilities. The Tejas Mk-1A, designed by the Aeronautical Development Agency (ADA) and manufactured by Hindustan Aeronautics Limited (HAL), is a modern multirole fighter equipped with advanced avionics, an Active Electronically Scanned Array (AESA) radar, and beyond-visual-range (BVR) missile capabilities, making it a critical asset for replacing ageing aircraft like the MiG-21, Jaguars.
The Tejas Mk-1A, an advanced variant of the original Mk-1, features over 65% indigenous content, aligning with India’s “Aatmanirbhar Bharat” (Self-Reliant India) initiative. It is equipped with an electronic warfare suite, self-protection jammers, and enhanced maintainability, offering superior performance compared to competitors like the Sino-Pakistani JF-17 Thunder. The aircraft’s per-unit cost is estimated at around ?600 crore, influenced partly by foreign exchange volatility linked to the General Electric F404 engines, which power the jet.
While the Tejas program represents a triumph of indigenous engineering, it has faced challenges, particularly with delivery timelines. The first Tejas Mk-1A, originally slated for delivery in March 2024, was delayed due to pending certifications and supply chain issues with the F404 engines from GE Aerospace. HAL has since committed to delivering the first aircraft by July 2025 from its new production line in Nashik, with plans to supply 16 jets in FY 2024-25 and complete the 83-jet order by 2028-29.
To meet the IAF’s growing demands, HAL has expanded its production capacity. With two production lines in Bengaluru capable of producing 16 jets annually and a third line in Nashik set to add capacity for eight more, HAL aims to manufacture up to 24 Tejas Mk-1A jets per year by 2026. However, concerns remain about HAL’s ability to meet both domestic and potential export commitments, especially with interest from countries like Argentina, Nigeria, Egypt, and the Philippines.
The ?67,000 crore deal is not just a military acquisition but a catalyst for India’s aerospace industry. The Tejas program involves over 500 Indian companies, including MSMEs, fostering job creation and technological innovation. The government’s recent shift to competitive bidding for defence contracts, as announced by Defence Secretary Rajesh Kumar Singh, is expected to further integrate private players like Larsen & Toubro and Dynamatic Technologies into the Tejas supply chain, enhancing the ecosystem’s vibrancy.
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