In what is being described as the largest deal for an indigenous fighter aircraft, the Ministry of Defence today signed a contract for the procurement of 97 Tejas Mk-1A jets from Hindustan Aeronautics Limited (HAL). The order is valued at over Rs 62,370 crore.

The contract includes 68 single-seat fighter aircraft and 29 twin-seat trainers, along with associated equipment for the Indian Air Force. Deliveries are scheduled to begin in 2027-28 and will be completed over a period of six years.

The agreement follows an earlier contract signed in February 2021 for 83 Tejas Mk-1A aircraft, worth Rs 46,898 crore. That earlier project has faced delays. The current deal was cleared by the Cabinet Committee on Security, chaired by the Prime Minister, on August 19, 2025.

The aircraft in this order will have an indigenous content of over 64 percent and include 67 additional items compared to the 2021 contract. Among the new systems are the UTTAM AESA radar, the Swayam Raksha Kavach electronic warfare suite, and indigenously developed control surface actuators.

The procurement has been classified under the 'Buy (India-IDDM)' category of the Defence Acquisition Procedure 2020. The aircraft is intended to meet the operational requirements of the IAF as older platforms such as the MiG-21 are phased out. The timing of the announcement coincides with the retirement of the IAF’s last two MiG-21 squadrons, scheduled for September 26.

According to officials, nearly 105 Indian companies are involved in the supply chain for the Tejas programme. The production is expected to generate around 11,750 direct and indirect jobs annually over the duration of the contract.

Separately, sources have confirmed that a deal with General Electric (GE) for 113 F-404 engines, which power the Tejas Mk-1A, has also been finalised. An official announcement on that agreement is expected soon.

Source: India Today