Largest-ever Rs 66,500 cr deal for 97 Tejas jets may be inked today: Report

An internal IAF review, following Operation Sindoor, warns that India would need significantly more than its authorised 42.5 squadrons to meet regional threats.

India is reportedly set to sign its largest-ever fighter jet contract, worth Rs 66,500 crore, for 97 Tejas Mark-1A aircraft with Hindustan Aeronautics Limited (HAL) today.

According to sources cited by The Times of India, the new contract could be finalised as early as Thursday, a day before the retirement of 36 MiG-21s, which will reduce the IAF to a historic low of 29 fighter squadrons. Each squadron typically comprises 16-18 aircraft.

Moneycontrol could not independently verify the report.

Notably, this comes even as the Indian Air Force (IAF) awaits the first deliveries of 83 “improved” jets ordered in February 2021 for Rs 46,898 crore.

Meanwhile, by comparison, Pakistan currently operates 25 squadrons and is expected to acquire at least 40 Chinese J-35A fifth-generation stealth jets, while China fields more than four times India’s fighter, bomber, and force-multiplier assets.

An internal IAF review, following Operation Sindoor, where Pakistan deployed J-10s armed with PL-15 beyond-visual-range missiles, warned that India would need significantly more than its authorised 42.5 squadrons to meet regional threats.

Under the 2021 contract, all 83 jets were scheduled for delivery between February 2024 and February 2028. The Cabinet Committee on Security approved the additional acquisition of 97 jets on August 19, 2025. According to sources cited in the report, the IAF had insisted that the new contract proceed only after the first deliveries from the earlier order.

HAL expects to deliver the first two jets from the 2021 order by October.

The IAF has stated it will accept these jets only after successful completion and certification of firing trials for Astra beyond-visual-range missiles, advanced short-range missiles, and laser-guided bombs.