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India Signs Rs 62,370 Crore Deal with HAL for 97 Advanced Tejas Mark-1A Jets

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New Delhi: The Ministry of Defence (MoD) on Thursday signed a landmark contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Tejas Mark-1A fighter jets worth ₹62,370 crore, excluding taxes. The order adds to the 83 Tejas Mark-1A aircraft already contracted in February 2021, bringing the total to 180.

The new contract covers 68 single-seater fighters and 29 twin-seater trainers for the Indian Air Force (IAF), along with associated equipment. Deliveries will begin in 2027-28 and continue for six years. The MoD said the aircraft will feature over 64 percent indigenous content and include 67 new items compared to the earlier order. Among the key upgrades are the indigenously developed Uttam Active Electronically Scanned Array (AESA) radar and an advanced electronic protection suite, bolstering India’s ‘Aatmanirbhar Bharat’ initiative.

The project will be supported by nearly 105 Indian vendors, expected to generate close to 11,750 direct and indirect jobs annually for six years. These 97 jets will represent the most advanced variant of the indigenous Tejas platform.

The deal marks a major step toward replacing the IAF’s ageing fleet of MiG-21s, which will be formally phased out at a ceremony in Chandigarh tomorrow. The acquisition also comes as the IAF faces squadron shortages, with its current strength at 31 squadrons, well below the sanctioned 42 required to counter a potential two-front threat from Pakistan and China. Once the MiG-21s retire, the strength will drop further to 29 squadrons.

The IAF currently operates 40 Tejas Mark-1 jets. With additional orders, the service is expected to gradually modernize its fighter fleet, replacing Jaguars, MiG-29s, and Mirage-2000s slated for retirement after 2029. Defence planners estimate India will need at least 500 fighter jets over the next two decades to maintain operational readiness.

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