
New Delhi : The Ministry of Defence has formalised a mega contract with Hindustan Aeronautics Limited (HAL) to supply 97 Tejas Mark-1A light combat aircraft to the Indian Air Force (IAF) at a cost of Rs 62,370 crore. The agreement follows the Cabinet Committee on Security’s approval in August and comes just ahead of the scheduled retirement of the IAF’s remaining MiG-21 squadrons.
The Tejas Mk-1A is designed to replace ageing aircraft and address the reduction in fighter squadron strength, which currently stands at 31 against a sanctioned 42. The contract is expected to bolster the IAF’s operational capabilities in air defence, maritime reconnaissance, and strike roles. A contract was signed with the HAL for 97 Tejas Light Combat Aircraft- Mk1A with associated equipment for the IAF at a cost of Rs 62,370 crore (excluding taxes),” the ministry said. The new agreement builds on a previous 2021 contract for 83 Tejas Mk-1A jets valued at Rs 48,000 crore, which has seen delays in execution.
Production of the Tejas Mk-1A involves over 105 Indian suppliers and is set to generate around 11,750 direct and indirect jobs each year throughout the contract’s lifespan. The advanced jets will incorporate key indigenous content, with upgrades including new control actuators, the Swayam Raksha Kavach electronic warfare suite, and the UTTAM AESA radar. The advanced jet will feature Swayam Raksha Kavach and control actuators, with over 64 per cent indigenous content and 67 new indigenous items, the ministry said.