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Reading: Govt Signs ₹62,370 Crore Deal With HAL to Procure 97 LCA Tejas Mk-1A Jets for IAF
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Home » Govt Signs ₹62,370 Crore Deal With HAL to Procure 97 LCA Tejas Mk-1A Jets for IAF

Indian Defence News

Govt Signs ₹62,370 Crore Deal With HAL to Procure 97 LCA Tejas Mk-1A Jets for IAF

Second Major Tejas Mk-1A Contract With HAL Marks Milestone in IAF Modernisation, Generates Over 11,000 Jobs Annually.

By Adhidev Jasrotia
Last updated: September 25, 2025
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MoD and HAL Sign Contract for Tejas

In a landmark step towards strengthening India’s air combat capability and advancing indigenisation, the Ministry of Defence (MoD) on Thursday inked a mega contract worth over ₹62,370 crore with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Tejas Mk-1A for the Indian Air Force.

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The contract covers 68 single-seat fighters and 29 twin-seater variants, along with associated equipment. Deliveries will begin in 2027–28 and will be completed within six years. This is the second major order for the Tejas Mk-1A, following the ₹48,000 crore contract signed in January 2021 for 83 jets.

Boost to Aatmanirbhar Bharat

According to the Defence Ministry, the Tejas Mk-1A under this new contract will feature more than 64% indigenous content, with 67 additional locally developed components integrated into the aircraft compared to the earlier variant. These include advanced systems such as the UTTAM AESA radar, Swayam Raksha Kavach self-protection suite, and indigenous control surface actuators.

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Officials said the deal underscores the government’s ‘Buy (India-IDDM)’ policy under the Defence Acquisition Procedure 2020, reflecting the push towards self-reliance in defence manufacturing.

Employment and Industrial Growth

The large-scale production is expected to generate nearly 11,750 direct and indirect jobs annually over six years, supported by a strong vendor base of over 105 Indian companies supplying critical components. Defence officials said the programme will give a significant boost to the domestic aerospace and defence ecosystem, creating long-term technological and economic benefits.

Strengthening the IAF

With a strike capability enhanced by indigenous avionics, improved survivability systems, and modern weapon integration, the Tejas Mk-1A is set to fill the gap left by the phased retirement of the MiG-21 fleet. The new induction will also improve the Indian Air Force’s squadron strength, offering fast, reliable, and combat-ready fighter jets tailored for modern warfare.

Strategic Significance

Defence analysts have hailed the agreement as a defining moment in India’s military modernisation. Beyond bolstering the IAF, the contract is also expected to pave the way for future indigenous programmes such as the Advanced Medium Combat Aircraft (AMCA).

Officials noted that the deal reflects not only India’s growing technological confidence but also its determination to emerge as a global hub in aerospace manufacturing.

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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.
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