The Ministry of Defence has returned a key proposal from the Indian Air Force (IAF) for the acquisition of 114 Multi-Role Fighter Aircraft (MRFA), labelling the plan "incomplete."
According to reports, the ministry has instructed the IAF to hold fresh consultations, primarily with French aviation firm Dassault, to ensure the multi-billion dollar project strictly aligns with India's 'Atmanirbhar Bharat' policy.
At the heart of the issue is the government's demand for a substantial increase in domestic manufacturing. Sources indicate the Defence Ministry is pushing for an indigenous content level of at least 75% for the new aircraft. This represents a significant policy shift, insisting that major defence imports must now serve to build India's domestic manufacturing and technology base.
Dassault Aviation, the maker of the Rafale fighter, is considered the frontrunner for the contract. The IAF already operates 36 Rafale jets, and the Indian Navy is procuring 26 of its marine variant, creating a common platform advantage. The ministry's directive now forces renewed negotiations to integrate this proven platform with India's local production ecosystem.
The IAF's formal proposal, known as the "Statement of Case," outlines the operational requirements and procurement details. It was reportedly stalled during inter-ministerial reviews because it did not sufficiently detail the roadmap for achieving the high levels of indigenization mandated by the government. The 30% indigenous content in the 2016 deal for 36 fly-away Rafales is no longer considered an acceptable benchmark for a large-scale purchase.
The government's negotiating position is focused on two key conditions: where the jets are built and how much of them is made from Indian parts. While a small initial batch of 20 to 30 jets may be accepted in a "fly-away" condition to meet the IAF's urgent needs, the vast majority must be manufactured in India. This would require Dassault to establish a new production facility in partnership with an Indian company, such as Hindustan Aeronautics Limited (HAL) or a private-sector giant like Tata or Adani.
This procurement is critical for the IAF, which is facing a severe depletion in its squadron strength, currently operating around 30 squadrons against a sanctioned strength of 42. The 114 MRFA are needed to replace ageing fleets like the MiG-21s and Jaguars and to fill the capability gap for a medium-weight fighter.
While the indigenous Tejas Mk-1A is being inducted, it serves as a light combat aircraft, and the MRFA is essential for maintaining a balanced force structure. The ministry's new mandate aims to ensure this large-scale acquisition creates a long-term industrial benefit for over 100 Indian suppliers and small-scale enterprises (MSMEs).
