New ₹67,000 Crore Deal for 97 Tejas Mk1A Jets to Energise Over 500 MSMEs, Transforming India’s Private Defence Manufacturing Sector

New ₹67,000 Crore Deal for 97 Tejas Mk1A Jets to Energise Over 500 MSMEs, Transforming India’s Private Defence Manufacturing Sector


In a monumental push for its strategic autonomy and air power, the Indian government is set to greenlight a massive ₹67,000 crore (approximately $7.8 billion) acquisition of 97 additional Tejas Mk1A fighter jets.

This decision, awaiting final approval from the Cabinet Committee on Security (CCS), marks a significant milestone for India's indigenous defence industry and will firmly establish the Light Combat Aircraft (LCA) Tejas as the future workhorse of the Indian Air Force (IAF).

This new procurement, slated for the 2026-27 financial year, will substantially boost the 'Aatmanirbhar Bharat' (Self-Reliant India) initiative. It follows a 2021 contract for 83 Tejas Mk1A jets, bringing the total number of this advanced variant on order to 180.

The induction of these aircraft is critical for the IAF as it continues to phase out its ageing fleets of Soviet-era MiG-21s and Jaguars, ensuring a modern and capable fighting force.

Developed by the Aeronautical Development Agency (ADA) and manufactured by the state-owned Hindustan Aeronautics Limited (HAL), the Tejas Mk1A is a fourth-generation multirole fighter.

It boasts significant upgrades over its predecessor, including an advanced Active Electronically Scanned Array (AESA) radar for superior target detection, an electronic warfare suite for enhanced survivability, and the capability to launch beyond-visual-range (BVR) missiles.

With an indigenous content level exceeding 65%, the aircraft is a testament to India's growing engineering and manufacturing prowess.

While the Tejas program is a landmark achievement, it has faced hurdles, particularly concerning production timelines. The delivery of the first Mk1A from the previous order was delayed due to supply chain disruptions, primarily related to its American-made General Electric F404 engines, and pending certifications.

However, HAL has since ramped up its efforts, with the first aircraft now expected for delivery by mid-2025 from a new production facility in Nashik.

To meet the increased demand from the IAF, HAL is significantly expanding its manufacturing capabilities. Its existing production lines in Bengaluru can produce 16 jets annually.

The new Nashik facility will add a capacity for another eight aircraft, with HAL aiming to achieve a combined annual production rate of up to 24 jets by 2026.

This expansion is crucial not only for domestic supply but also to cater to growing international interest from countries such as Argentina, Egypt, Nigeria, and the Philippines.

This mega-deal extends far beyond a simple military purchase; it is a major economic catalyst for India’s entire aerospace and defence ecosystem.

The Tejas program directly involves a network of over 500 Indian companies, including a large number of Micro, Small, and Medium Enterprises (MSMEs). This extensive supply chain fosters technological growth, creates skilled jobs, and builds a robust industrial base.

The government's recent emphasis on competitive bidding is set to further integrate private sector giants like Larsen & Toubro and VEM Technologies, which are now manufacturing critical sub-assemblies such as fuselages, enhancing the overall efficiency and dynamism of India's private defence manufacturing sector.
 
It would be a mistake to order 97 more Tejas 1As. HAL is struggling to deliver even the 83 such aircraft already ordered. By the time that order is fulfilled the Tejas 2 will be ready for production. Tejas 2 is a far more capable aircraft whereas Tejas 1A falls woefully short especially on range, endurance. The best way is push HAL to deliver the 83 already ordered asap, complete the Tejas 2 development asap and get a private company to build it in addition to HAL in large numbers rapidly.
 
Next lot of Tejas-1A must be upgraded to carry 4.5 ton weapon load attain Mac- 2.25 speed twin missile launch pylon ad powered by 90-95 KN engine !
 
When will GE start supplying GE-404 engines smoothly? Until now, only a single engine has been supplied, and the second and third are expected in the month of July. This is how GE, a well-known Western OEM, is fulfilling its international contract, not even supplying 16 jet engines as per the contract and its production capacity. Meanwhile, HAL is expanding its production rate to over 20 per year. GE needs to match the production rate up to 24 per year by supplying engines. I have said 1000 times GE needs to ramp up production rate from the current 12/16 to beyond 24.
 
We can order as many Mk1A Tejas as we want, but their delivery will always depend on engine availability from GE. Why are we not fast-forwarding our engine acquisition from Safran or Rolls-Royce with full ToT and use that to roll out Mk2 instead of ordering more Mk1A?
 
Possible export interest? Argentina got second-hand F-16s, Egypt is moving for either FA-50s or J-10s, Nigeria is presently looking for money, and the Philippines is going for either the F-16, KF-21, or Gripen.
 
Why is the government ignoring the pressing issue of the engines? Instead, we're stuck listening to grand announcements that amount to little more than hot air. The first 40 LCA haven't even been upgraded to the Mk1A! So what's really going on here? It feels like we're just being fed empty rhetoric. Let's push for real action!
 
Why is the government ignoring the pressing issue of the engines? Instead, we're stuck listening to grand announcements that amount to little more than hot air. The first 40 LCA haven't even been upgraded to the Mk1A! So what's really going on here? It feels like we're just being fed empty rhetoric. Let's push for real action!
The US is pressuring India to buy F-35s. GE engine deliveries will start immediately once the F-35 order is placed. Also, spares for grounded Indian Apaches will be sent after signing the F-35 order.
 
The US is pressuring India to buy F-35s. GE engine deliveries will start immediately once the F-35 order is placed. Also, spares for grounded Indian Apaches will be sent after signing the F-35 order.
This situation amounts to nothing less than outright blackmail. The absence of a contingency plan poses a serious risk to India's national security, a matter the government seems to be treating with alarming indifference. Despite this vulnerability, there remains an unwavering reliance on the United States to honor its contractual obligations, which somehow feels increasingly naïve in the face of these risks.
 
Visionary step taken by GOI as our squadron strength is down. Hope these 180 Mk1A can be delivered to IAF by 2035, assuming 18 deliveries per year. Sign deal for GE F404 engines now before they shut down the assembly line again.
 
The real value of Tejas is when we integrate Kaveri and make it fully autonomous. Pair this with CATS Warrior, and we'll have a deadly platform. A small fighter UCAV will be the future. I'm calling it – bulky 5th generation fighters will become obsolete when AI takes over. You will be amazed at what AI can already do. Just look at SpaceX's vertical landing rockets. Autonomous fighters will use the same underlying algorithm. So, for AI, an expendable or semi-expendable low-cost supersonic jet will be the future.
 
Yet to approve. From this point to approval, it will take two years, and then HAL will work on this order for another five years, as the 83 they have to build are running late. There is not even one efficient, timely cog in this entire process chain. It will be a saga; let's brace with our buckets to shed tears for this order to be culminated.
 
There is a glaring deficiency in the protective suit of the LCA MK1A, i.e., it still is not fitted with MAWS (Missile Approach Warning System). This is due to the bungling of the DRDO trying to make a MAWS with Israel first and then a European company. It was suboptimal, and it could not be fitted into the SU-30 MKI or the LCA series. MAWS is needed to alert the pilot of an approaching missile's direction and to do a last-ditch maneuver to avoid the missile. The Rafale is fitted with MAWS; why it got hit is still a mystery.
 
What's the point? Isn't it clear as day by now that the Americans can't (or won't) supply engines on time, and HAL cannot ramp up production even if the engines miraculously appeared from somewhere?
 

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