Defence Ministry inks Rs 62,370 cr deal with HAL for 97 Tejas Mark-1A jets

The Ministry of Defence (MoD) on Thursday signed a contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Tejas Mark-1A aircraft for the Indian Air Force.

The deal was sealed for Rs 62,370 crore (Rs 66,550 crore with taxes) and is in addition to the 83 jets ordered in January 2021, taking the total to 180 aircraft. With the latest order, the MoD, which is a majority stakeholder in HAL, has reposed faith in the listed public sector enterprise despite it being 18 months behind schedule in delivering jets under the previous contract.

The fresh order is for 68 fighter jets and 29 twin-seater trainer aircraft along with associated equipment. The deliveries would start during 2027-28 and were expected to complete in next six years, the MoD said in statement.

As the Centre has been pushing for self-reliance, the newly ordered jets will feature 64 per cent indigenous content, with 67 additional items incorporated beyond those in the earlier contract for 83 planes. The integration of advanced indigenously developed systems such as Uttam Active Electronically Scanned Array (AESA) Radar and an electronic protection suite would further strengthen the government’s ‘Aatmanirbharta’ initiative, the MoD said.

The ministry said the 97 jets would be the most advanced variant of the indigenously designed and manufactured Tejas. A crucial aspect of the contract is the delivery timeline. HAL is facing a delay in supply of F-404 engines for Tejas Mark-1A from US firm General Electric. Nearly a dozen jets are ready at the HAL facility, but only three engines have been supplied so far. As a result, not a single jet has been delivered to the Air Force, which is battling a dwindling combat strength. The jet deliveries should have started in March 2024 and the engines should have arrived a few months in advance.

The MoD said the project was being supported by a robust vendor base as 105 Indian companies were directly engaged in manufacture of components. The production is expected to generate nearly 11,750 direct and indirect jobs annually over six years, it said.

The Tejas programme is aimed at helping the Air Force replace its fleet of MiG-21s, which will be formally phased out at a ceremony in Chandigarh on Friday. The IAF is already operating 40 Tejas Mark-1 jets.

The Air Force currently has 31 squadrons (each having up to 18 planes) of fighter jets against the sanctioned 42 to counter a potential two-front challenge from Pakistan and China. With the phasing out of MiG-21, the strength would be down to 29 squadrons. The IAF’s fleet of Jaguar, MiG-29 and Mirage 2000, all inducted in phases in the 1980s, is scheduled to retire in batches after 2029-30. These four types of jets are about 250 in number and are operating on an extended life cycle. As per projections, India needs to produce some 500 jets for the IAF over the next two decades.