The Ministry of Defence on Thursday signed a Rs 62,370 crore contract with Hindustan Aeronautics Limited (HAL) for 97 Tejas Mk-1A fighter aircraft, marking the biggest procurement under the indigenous light combat aircraft programme. The deal, announced by the MoD in an official statement will provide the Indian Air Force (IAF) with 68 single-seat fighters and 29 twin-seater trainers.
Approval and procurement process
The procurement was approved by the Cabinet Committee on Security (CCS) chaired by Prime Minister Narendra Modi on August 19, 2025. It followed earlier clearances by the Defence Acquisition Council in November 2023 and the issue of a Request for Proposal in April 2024.
This is the second big order placed with HAL for the Tejas Mk-1A, following the 2021 contract for 83 jets. With both deals together, the aircraft is set to form the backbone of the IAF’s future fleet.
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MoD signed a contract with @HALHQBLR for 97 LCA Mk1A aircraft (68 Fighters & 29 Twin Seaters) with associated equipment for the IAF at Rs 62,370 Cr (excl. taxes) under Buy (India-IDDM), today in New Delhi. The advanced LCA Mk1A integrates UTTAM AESA #Radar, Swayam Raksha Kavach &… pic.twitter.com/Bwm8WlsITq
— Ministry of Defence, Government of India (@SpokespersonMoD) September 25, 2025
Advanced indigenous systems
According to the ministry, the upgraded Tejas Mk-1A will feature advanced indigenously developed technologies including the UTTAM Active Electronically Scanned Array (AESA) radar, the Swayam Raksha Kavach electronic warfare suite and new control actuators. The jets will have more than 64 per cent indigenous content, with 67 additional components incorporated beyond the earlier order.
Though the aircraft will continue to be powered by General Electric engines sourced from the United States, HAL is scaling up its assembly lines. Its annual production capacity will increase from 18 to 28 aircraft, with manufacturing to be carried out at its Bengaluru and Nashik facilities.
Economic impact
Deliveries are expected to begin in 2027–28 and will continue for six years. The programme is expected to create nearly 11,750 jobs every year, directly and indirectly, supported by a supply chain of about 105 Indian companies making components.
The new fleet will bolster the IAF’s squadron strength as older aircraft such as the MiG-21 are phased out. Defence officials said the induction of Tejas Mk-1A fighters will close capability gaps and enhance operational readiness. The MoD said the deal highlights the government’s push for self-reliance in defence. “The contract with HAL for 97 LCA Mk-1A will enhance the IAF’s capability while significantly boosting indigenous defence production,” the ministry said.
