The Ministry of Defence on Tuesday announced a landmark agreement with Hindustan Aeronautics Limited (HAL) for the supply of 97 Tejas Mk-1A fighter aircraft, marking the largest order to date for a homegrown combat jet. The deal, valued at ₹62,370 crore, includes 68 single-seat fighters and 29 twin-seat trainers, along with associated systems for the Indian Air Force (IAF).

Deliveries are expected to begin in 2027-28 and will continue for six years. This fresh order comes on top of a previous ₹46,898 crore contract for 83 Tejas Mk-1A aircraft signed in 2021, which has seen delays in execution.

The newly contracted jets will carry over 64% indigenous content and feature 67 upgraded components compared to earlier versions. Key additions include the UTTAM AESA radar, the Swayam Raksha Kavach electronic warfare suite, and indigenous actuators for control surfaces.

The order falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, and aligns with the IAF’s modernization plan as ageing MiG-21 squadrons are retired—the last two to be decommissioned on September 26.

According to defence officials, more than 105 Indian firms form part of the Tejas supply chain, with production expected to generate nearly 11,750 direct and indirect jobs every year through the duration of the contract.

In a parallel development, a separate agreement for 113 General Electric (GE) F-404 engines, which power the Tejas Mk-1A, has also been finalized, with an official announcement anticipated shortly.