Government Signs Mega Deal For 97 Tejas Mark-1A Jets Worth Rs 62,370 Crore

The Ministry of Defence on Thursday signed a landmark deal with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Tejas Mk-1A fighter jets. The contract, valued at over Rs 62,370 crore, marks the biggest order ever for an indigenous combat aircraft. The order includes 68 single-seat fighters and 29 twin-seat trainers along with associated equipment for the Indian Air Force (IAF). Deliveries will begin in 2027-28 and continue for six years. The agreement strengthens India’s push for self-reliance in defence production under the ‘Atmanirbhar Bharat’ initiative.

Deal Follows Earlier Contract Signed in 2021

This latest contract follows a previous agreement signed in February 2021 for 83 Tejas Mk-1A aircraft worth Rs 46,898 crore. That earlier order, however, has faced delays in production and delivery. The new deal was cleared by the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, on August 19, 2025. Defence officials stated that the current order will significantly expand the Tejas fleet within the IAF. The timing of the deal also coincides with the phasing out of the MiG-21, which has served the Air Force for decades.

Advanced Features and Higher Indigenous Content Added

The new batch of Tejas aircraft will include 67 additional systems compared to the earlier order. Among the key upgrades are the indigenously developed UTTAM AESA radar, the Swayam Raksha Kavach electronic warfare suite, and Indian-made control surface actuators. The indigenous content of these aircraft will exceed 64 percent, making the programme a major step forward in India’s defence manufacturing. Officials confirmed that the order falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, ensuring maximum use of local technology and resources.

Tejas to Replace Ageing MiG-21 Fleet

The procurement of Tejas Mk-1A jets is aimed at meeting the operational requirements of the Indian Air Force as it retires older combat platforms. The last two squadrons of MiG-21 aircraft are scheduled to retire on September 26, ending a long service history with the force. Defence officials said the Tejas will play a vital role in strengthening India’s air combat capabilities. The aircraft, designed for high maneuverability, will also support future upgrades and pave the way for more advanced indigenous fighter programmes.

The Tejas programme involves nearly 105 Indian companies in its supply chain. According to officials, the contract is expected to create around 11,750 direct and indirect jobs every year during the production period. The project will not only strengthen the IAF but also support India’s aerospace industry and skill development. In addition, sources confirmed that a separate deal with General Electric (GE) for 113 F-404 engines, which power the Tejas Mk-1A, has been finalised. A formal announcement regarding this engine supply contract is likely to follow soon.

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