Moneycontrol PRO
HomeNewsBusinessDefence Ministry inks Rs 62,370 crore deal with HAL for 97 LCA Tejas Mk-1A jets

Defence Ministry inks Rs 62,370 crore deal with HAL for 97 LCA Tejas Mk-1A jets

This is the largest order for the indigenous Tejas platform so far, and follows the Rs 46,898 crore order for 83 Mk-1A jets signed in January 2021.

September 25, 2025 / 15:45 IST
The delivery of the aircraft will begin in 2027-28 and is scheduled to be completed within six years.

The Ministry of Defence (MoD) on September 25 signed a Rs 62,370 crore contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk-1A jets for the Indian Air Force (IAF). The deal includes 68 single-seat fighters and 29 twin-seaters, along with associated equipment.

Delivery timeline

The delivery of the aircraft will begin in 2027-28 and is scheduled to be completed within six years. This is the largest order for the indigenous Tejas platform so far, and follows the Rs 46,898 crore order for 83 Mk-1A jets signed in January 2021.

Higher indigenous content

The new Mk-1A variant will feature over 64 percent indigenous content, with 67 additional items added compared to the earlier contract. Key upgrades include the UTTAM Active Electronically Scanned Array (AESA) Radar, the Swayam Raksha Kavach electronic warfare system, and indigenous control surface actuators, all designed to enhance combat capabilities.

 



 

Boost to domestic ecosystem

The project will be supported by a supply chain of nearly 105 Indian companies engaged in manufacturing components. Production is expected to generate around 11,750 direct and indirect jobs annually over the six-year period.

The acquisition falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, aligning with the government’s Aatmanirbhar Bharat initiative. The LCA Mk-1A is the most advanced version of the Tejas fighter and is expected to strengthen the IAF’s operational readiness significantly, the press release added.

Moneycontrol News
first published: Sep 25, 2025 02:43 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347