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Reading: Tata, Mahindra and HAL in Race for ₹1 Lakh Crore IAF Tender for 60 Multirole Transport Aircraft
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Home » Tata, Mahindra and HAL in Race for ₹1 Lakh Crore IAF Tender for 60 Multirole Transport Aircraft

Indian Defence News

Tata, Mahindra and HAL in Race for ₹1 Lakh Crore IAF Tender for 60 Multirole Transport Aircraft

Indian firms to lead the programme, with around 20% aircraft planned in fly-away condition and the remainder to be manufactured in India with over 60% indigenous content.

By Adhidev Jasrotia
Last updated: August 12, 2026
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Transport Aircraft

The Ministry of Defence has issued a tender estimated at around ₹1 lakh crore for the procurement of 60 multirole transport aircraft for the Indian Air Force, marking a major step towards modernising the IAF’s ageing transport fleet.

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The programme is expected to be led by Indian companies, with Hindustan Aeronautics Limited (HAL), Tata and Mahindra among the Indian firms involved in the competition. The aircraft are expected to be produced through partnerships between Indian companies and global original equipment manufacturers.

Mahindra Defence has partnered with Brazilian aerospace major Embraer to offer the C-390 Millennium transport aircraft, while Tata is expected to partner with Lockheed Martin for the C-130J Super Hercules. The C-130J is already operated by the Indian Air Force for specialised transport and special operations missions.

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Under the proposed acquisition model, around 20 per cent of the aircraft are expected to be delivered in fly-away condition. The remaining aircraft would be manufactured in India, with more than 60 per cent indigenous content, strengthening domestic aerospace manufacturing and the defence industrial ecosystem.

The programme is expected to involve joint ventures between Indian companies, original equipment manufacturers and HAL, creating opportunities for domestic production of aircraft and critical components. The arrangement could also provide an impetus to the development of India’s aerospace manufacturing capabilities and supply chains.

The Indian Air Force currently operates 12 C-130J Super Hercules aircraft, which have been used extensively for strategic airlift and specialised missions. The proposed multirole transport aircraft fleet would provide additional capacity for moving troops, equipment and other cargo over long distances.

The IAF is also expanding its transport aviation capabilities through the C-295 programme with Airbus. Around 70 C-295 aircraft are planned for induction, with the majority being manufactured in India. The programme represents another significant step towards establishing India as a major centre for military aircraft production.

The new multirole transport aircraft could perform a variety of missions beyond conventional cargo movement. The aircraft may also be considered for aerial refuelling roles, potentially allowing them to support fighter aircraft during extended operations.

The transport fleet modernisation comes alongside several other major IAF acquisition programmes. The Air Force is pursuing the procurement of 114 Rafale fighter aircraft as part of its fighter fleet modernisation plans and is also looking at acquiring more than 100 trainer aircraft to replace its ageing Hawk trainer fleet and expand pilot training capacity.

The proposed 60-aircraft transport programme therefore forms part of a broader effort to strengthen the IAF’s airlift, training and combat-support capabilities. Increasing transport capacity is particularly important for rapidly moving personnel, military equipment and supplies across India’s diverse geographical and operational environments.

The emphasis on indigenous production is also significant under the government’s broader push for self-reliance in defence manufacturing. If implemented as proposed, the programme could create substantial opportunities for Indian private-sector companies, HAL and domestic suppliers while increasing the indigenous content of India’s military transport fleet.

The competition between Tata, Mahindra and other Indian industry players, alongside global aircraft manufacturers, is expected to make the multirole transport aircraft programme an important milestone in the IAF’s long-term modernisation and India’s growing defence aerospace manufacturing ambitions.

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ByAdhidev Jasrotia
An expert in Indian defence affairs, military recruitment, and geopolitical strategy, brings a strong foundation in national security journalism. Recommended for the Indian Army with All India Rank 138.
Previous Article IPS officer Rahul Bansal Trainee IPS officer Rahul Bansal under scanner in ₹1 crore bribery complaint linked to cyber fraud case in Chhattisgarh
Next Article Adm Krishna Swaminathan and Dr Navinchandra Ramgoolam Navy Chief Admiral Krishna Swaminathan Meets Mauritius PM Navinchandra Ramgoolam, Discusses Maritime Security and Defence Cooperation

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