Govt inks Rs 62,370 crore deal with HAL to procure 97 LCA Tejas Mk-1A jets

By FnF Correspondent | PUBLISHED: 25, Sep 2025, 17:31 pm IST | UPDATED: 25, Sep 2025, 17:31 pm IST

The Ministry of Defence (MoD) on Thursday (September 25) signed a contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A for the Indian Air Force. The order includes 68 single-seat fighters and 29 twin-seaters, along with associated equipment, at a total cost exceeding Rs 62,370 crore (excluding taxes). The delivery of these aircraft would commence during 2027-28 and be completed over a period of six years.

The signing of the contract came over a month after the Cabinet Committee on Security (CCS) headed by Prime Minister Narendra Modi, green-lighted the mega procurement. It is the second such contract awarded to the state-run aerospace behemoth.

The aircraft will have an indigenous content of over 64 per cent, with 67 additional items incorporated, over and above the previous LCA Mk1A contract signed in January 2021. The integration of advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators will further strengthen the Aatmanirbharta initiatives.

Project to generate employment

The project is being supported by a robust vendor base of nearly 105 Indian companies directly engaged in the manufacture of detailed components. The production is expected to generate close to 11,750 direct and indirect jobs per year for the duration of six years, giving a major boost to the domestic aerospace ecosystem.

The acquisition, under the 'Buy (India-IDDM)' category of Defence Acquisition Procedure 2020, is in line with the Government’s thrust on indigenisation. The LCA Mk1A is the most advanced variant of the indigenously designed and manufactured fighter aircraft and will serve as a potent platform to meet the operational requirements of the IAF.

Boost to 'Make in India' initiative

This advanced indigenous aircraft, manufactured by HAL, will not only strengthen the operational capabilities of the Indian Air Force but will also mark another significant milestone in making the country globally self-reliant in the defense manufacturing sector.

With the induction of Tejas Mk1A aircraft, the Air Force will receive fast, modern and reliable fighter jets. This will enhance the current squadron strength and fill the gap created by the phased retirement of older aircraft like the MiG-21.

This agreement will not only boost the strength of the Indian Air Force but will also provide a major impetus to the domestic defense industry and supply chain. HAL and the Indian companies collaborating with it will gain significant technical and economic benefits.