HAL Set to Sign Rs 66,000 Cr Contract for 97 Tejas Mk1A Jets Next Month, Cementing India’s Self-Reliance in Fighter Jet Production

India's push for self-reliance in the defence sector is poised to take a monumental leap forward, with the Ministry of Defence preparing to finalise a contract worth approximately Rs 66,000 crore with Hindustan Aeronautics Limited (HAL).

The agreement is for the procurement of 97 additional Light Combat Aircraft (LCA) Tejas Mk-1A jets for the Indian Air Force (IAF).

According to HAL's Chairman and Managing Director, DK Sunil, the landmark deal is anticipated to be officially signed in October 2025, marking one of the largest-ever contracts for domestically produced military hardware.

The LCA Tejas Mk-1A is a significantly upgraded version of the indigenous Tejas fighter, designed to form the backbone of the IAF's modern combat fleet.

This advanced variant incorporates more than 40 improvements over the initial Tejas Mk-1 version. Key upgrades include an Active Electronically Scanned Array (AESA) radar for superior target detection, an advanced electronic warfare suite for enhanced survivability, and the capability to fire a variety of beyond-visual-range missiles.

This order is crucial for the IAF's modernisation plan, aimed at replacing its fleet of ageing MiG-21s and arresting the decline in its number of fighter squadrons.

The finalisation of this new contract is strategically timed and depends on HAL meeting a key milestone from a previous agreement.

The new deal will proceed shortly after HAL delivers the first two aircraft from an earlier order for 83 LCA Mk-1A jets, a contract valued at Rs 48,000 crore that was signed in February 2021. DK Sunil confirmed that the necessary paperwork is being prepared.

Following the signing, HAL will also formalise a critical sub-contract worth nearly $1 billion with US-based GE Aerospace for 113 F404-IN20 engines, which will power the new fleet of Tejas fighters.

This massive order will solidify HAL's position as a premier aerospace manufacturer and is a testament to its expanding production capabilities.

The state-owned enterprise has been systematically increasing its production capacity to meet the IAF's urgent requirements.

It plans to ramp up its annual production rate from the current 8 aircraft to 16, with a target of eventually reaching 24 aircraft per year.

This scaling-up effort is vital to ensure timely delivery and the swift operationalisation of new squadrons within the Air Force.

The Rs 66,000-crore deal represents a defining moment for India’s 'Aatmanirbhar Bharat' initiative.

By investing heavily in a home-grown fighter platform, the government is reinforcing its commitment to reducing dependency on foreign military imports.

This contract will not only equip the IAF with a potent, modern fighter jet but will also stimulate the domestic defence ecosystem, foster technological innovation, create thousands of skilled jobs, and enhance India's potential as a future exporter of advanced military aircraft.

 

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[Mayank393]

will they integrate uttam radar and drdo's EW suite on tejas mk1a in new tejas deal?

 

[sanket]

Repeat order mean confidence in Fighter jet.

 

[New]

Great.

Now, cancel 114 Rafale. With that money, order 200 Tejas Mk2 and, if necessary and only if necessary, 50 F-35s. And, focus all energy and resources on AMCA.

 

[sanket]

Great.

Now, cancel 114 Rafale. With that money, order 200 Tejas Mk2 and, if necessary and only if necessary, 50 F-35s. And, focus all energy and resources on AMCA.

No chance for F-35 at all. The U.S. is going to return empty-handed from the fighter jet circus, whether it is MRFA or a fifth-generation fighter jet.

 

[Dredd]

Great.

Now, cancel 114 Rafale. With that money, order 200 Tejas Mk2 and, if necessary and only if necessary, 50 F-35s. And, focus all energy and resources on AMCA.

I think you are unaware that the Tejas Mk2 is 3 years late for its first flight and might get delayed further. Expecting any production Tejas Mk2 before 2035 is dreaming.

 

[New]

No chance for F-35 at all. The U.S. is going to return empty-handed from the fighter jet circus, whether it is MRFA or a fifth-generation fighter jet.

Our loss. The F-35 is the best option we have.

 

[Aditya Khullar]

Repeat order mean confidence in Fighter jet.

Absolutely not, I don't agree with you on this. They have not tested a single unit of Mk1A, and the 1A variant has some significant upgrades over the Mk1. Even the IAF chief said the plane is mostly a trainer, as the time it was supposed to be used in (2000s) is already long gone. Let's hope the Mk2 is actually a decent plane (like a Rafale/F-15EX/Su-35 level).

 

[Aditya Khullar]

Our loss. The F-35 is the best option we have.

No, but if the US offers something similar to an Israeli deal (like an F-35IN with an Indian mission computer and weapons integration), then I'd say despite the high life cycle cost it's a very good offer and can be acquired in numbers of 54-72, enough to put the PLAAF and PAF off until we can field large numbers of AMCA.

 

[New]

No, but if the US offers something similar to an Israeli deal (like an F-35IN with an Indian mission computer and weapons integration), then I'd say despite the high life cycle cost it's a very good offer and can be acquired in numbers of 54-72, enough to put the PLAAF and PAF off until we can field large numbers of AMCA.

We're already dependent on the US for engines for the C-17, P-8, marine engines, and tank engines.

Fifty F-35s won't change anything.

Cancel the 114 Rafales costing $30 billion.

Buy 200 Tejas Mk2s and 50 F-35s with that $30 billion price.

A simple and best solution.

The Su-57 and Rafale are 4.5 generation fighters, not 5th generation.