Hindustan Aeronautics Limited (HAL), on Wednesday, signed a landmark contract with the Ministry of Defence (MoD) for the supply of 97 LCA Tejas Mk-1A fighter aircraft to the Indian Air Force (IAF). The Rs 66,500-crore deal is the single largest order in the company’s history.
Calling it a “red-letter day,” HAL Chairman and Managing Director Dr. DK Sunil said the order displays the government’s confidence in the indigenous fighter program.
"It's a red-letter day for us. This follow-on order of 97 LCA Tejas Mark 1 Alpha", he noted.
"This is a follow-on order with the fighters and trainers. There will be 70% indigenous content in this order as compared to the earlier one. We will integrate the indigenous radar, EW suite, and many other equipment. This allows us to continue our supply chain," he added while interacting with the press on Wednesday.
Dr. Sunil stated that HAL has already finalised a follow-on order of 113 engines with U.S.-based General Electric (GE).
"We have already concluded the follow-on order of 113 engines with General Electric. Now we will be signing the contract with them. This is a very good vote of confidence by the government of India," he remarked, hailing the Centre's initiative.
He further added, "The work HAL is doing and the indigenous content and the ecosystem we are building and working, it is an excellent example of how the government is walking the talk of atmanirbharta and giving orders so that this will generate jobs downstream, not only in HAL but downstream in all our ecosystem... It is a very big boost for atmanirbharta."
On the engine supply, the HAL chief admitted there were delays but expressed optimism about recovery. “GE had promised 12 engines in a year, but this year we may receive 10, with the remaining by March. The 10th aircraft is already built, and the 11th is ready. GE is now sorting out its supply chain issues. Next year, they have committed to delivering 20 engines,” he explained.
He also pointed to improved coordination with GE’s top management. “They are sharing regular updates on production status and challenges. Communication has improved, and we are confident they will now ramp up and meet our requirements,” Dr. Sunil said.
The contract covers 68 single-seat fighters and 29 twin-seater variants, along with their associated systems and equipment.
This marks the biggest-ever order for the indigenously developed Tejas platform, eclipsing the Rs 46,898-crore contract signed in January 2021 for 83 Mk-1A jets. According to officials, deliveries under the fresh deal will begin in 2027-28 and are scheduled to be completed within six years.
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