In a major development aimed at bolstering India’s air-to-air refuelling capability, Israel Aircraft Industries (IAI) is poised to secure a ₹8,000 crore contract to supply six mid-air refuelling aircraft to the Indian Air Force (IAF).
According to defence sources, IAI, an Israeli government-owned firm, has emerged as the sole qualifying vendor in a global competition after meeting all technical and offset requirements, including the stipulation of 30% Made in India content.
Under the proposed deal, IAI will convert six pre-owned Boeing 767 commercial jets into aerial refuelling tankers, equipped with advanced refuelling and avionics systems before delivering them to the IAF. The project aligns with India’s broader push for indigenisation and capability enhancement in the aerospace sector.
The IAF currently operates six Russian-origin IL-78 tanker aircraft based at Agra Air Force Station, providing refuelling support for frontline fighters, including the Su-30MKI, Rafale, and MiG-29 fleets. However, operational challenges and maintenance constraints have long highlighted the need for additional refuellers.
Over the past 15 years, the Air Force has made multiple attempts to procure additional tanker aircraft, with earlier bids involving Airbus and Russian manufacturers falling through due to cost and compliance issues. IAI’s proposal — involving modified second-hand aircraft with significant local content — appears to meet the IAF’s requirements for cost-efficiency and strategic autonomy.
The new refuelling fleet is expected to extend the operational reach of IAF fighters, enhancing India’s ability to project air power across long distances and sustain missions over the Indian Ocean Region.
