India issues tender for 60 medium transport aircraft: ₹1 lakh crore programme, payload and Make-in-India plan explained

The Defence Ministry issued the tender in August 2026 for 60 Medium Transport Aircraft for the Indian Air Force. The programme is estimated to cost approximately Rs 1 lakh crore and is intended to modernise the IAF’s ageing transport fleet. 

Likely bidders include Tata Advanced Systems with Lockheed Martin’s C-130J and Mahindra Defence with Embraer’s C-390 Millennium. HAL is also expected to participate, but its proposed foreign-aircraft partner has not been publicly identified. Airbus–Tata should not be presented as a confirmed pairing.

The tender reportedly specifies a cargo payload capacity between 18 and 30 tonnes. Aircraft manufactured in India are also required to achieve 60% indigenous content, a higher target than the 50% stated in the original script.

The reported procurement structure calls for 12 aircraft to arrive in flyaway condition. The remaining 48 would be manufactured in India, making this one of the country’s largest proposed military-aircraft production programmes.

The Defence Acquisition Council granted Acceptance of Necessity for the programme on March 27, 2026. The government said the new aircraft would replace elements of the An-32 and Il-76 fleets and support strategic, tactical and operational airlift requirements. 

The tender begins the competitive evaluation process. Technical assessment, aircraft trials, commercial negotiations and government approvals must take place before a winning platform is selected and a contract is signed.