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Defence ministry signs 66,500 crore deal for 97 Tejas Mark-1A fighter jets

  • India is set to sign a historic Rs 66,500 crore deal with Hindustan Aeronautics Limited (HAL) for 97 Tejas Mark-1A fighter jets
  • This is the largest-ever deal for indigenous fighter aircraft and will help boost the Indian Air Force's squadron strength
  • The new jets will replace the retiring MiG-21s and mark a significant step towards India's self-reliance in defence

25 Sep 2025

Defence ministry signs 66,500 crore deal for 97 Tejas Mark-1A fighter jets

In a landmark decision for indigenous defence manufacturing, a deal worth a staggering Rs 66,500 crore for 97 Tejas Mark-1A fighter jets has been signed between the Ministry of Defence and Hindustan Aeronautics Limited (HAL). This acquisition, described as the largest-ever deal for indigenous fighter aircraft, marks a significant step towards bolstering the Indian Air Force's capabilities and reinforcing the nation's "Make in India" initiative.

The official announcement of the contract is expected on Thursday, a day that holds symbolic importance for the Indian Air Force. The final two squadrons of the IAF's venerable MiG-21 fighter jets are slated for retirement, paving the way for the new-generation Tejas to take their place. This transition signifies a generational leap in India's air power, moving from ageing Soviet-era technology to modern, indigenously developed platforms.

This new contract builds upon a previous agreement signed in February 2021 for 83 Tejas Mark-1A aircraft, which was valued at Rs 46,898 crore. The acquisition of these additional 97 jets received approval from the Prime Minister-led Cabinet Committee on Security on August 19, demonstrating the government's commitment to strengthening the country's defence industrial base.

The Tejas Mark-1A is an advanced version of the Light Combat Aircraft (LCA) and is equipped with a range of modern features. To ensure a smooth production timeline, a related deal has also been finalised with General Electric (GE) for the supply of 113 F-404 engines, which are the powerplants for the Tejas fighters. This dual-pronged approach ensures both the airframe and engine requirements are met, streamlining the manufacturing and delivery process.

The acquisition is crucial for the Indian Air Force, which has been facing a significant shortfall in its fighter squadrons. The induction of these 97 jets will help in rebuilding the squadron strength and maintaining operational readiness. It will also reduce the Air Force's reliance on foreign suppliers and strengthen India's strategic autonomy in the defence sector.

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Defence ministry signs 66,500 cr deal for 97 Tejas Mark-1A
Tejas, HAL, Indian Air Force, Defence, India





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