Israeli firm likely to bag Indian Air Force’s Rs 8,000-crore aerial tanker deal: Report

The Indian Air Force is nearing a significant procurement milestone as it prepares to award an estimated Rs 8,000 crore contract for six aerial tanker aircraft to Israel Aircraft Industries (IAI), an Israeli government-owned company. According to a report in ANI, this decision follows a competitive process in which IAI emerged as the only remaining vendor, after other international firms failed to meet specific tender criteria including the requirement for up to 30 per cent indigenous content on second-hand planes.

The addition of these aerial tankers is expected to enhance the operational range and effectiveness of the Air Force and Navy, the report added.

The competition, initiated several years ago, initially attracted Russian and European firms. However, IAI became the sole contender after competitors could not fulfil the mandates related to indigenous content, it stated. The competitive tender saw other international bidders withdraw as they were unable to comply with requirements for 3-30 per cent indigenous content on refurbished planes.

The Indian Air Force currently operates a fleet of six Russian-origin Il-78 tanker aircraft based in Agra, which support the refuelling needs of various fighter aircraft. Over the past fifteen years, the Air Force has made multiple unsuccessful attempts to acquire additional refuelling planes, making this development particularly significant for its operational planning.

Israel Aircraft Industries has agreed to fulfil the offset obligations, including providing around 30 per cent 'Made in India' content as part of the deal, as per the ANI report. The proposed contract involves modifying six used Boeing 767 commercial aircraft into tanker configurations, which will then be supplied to the Indian Air Force.

While the Indian Air Force has recently resorted to wet-leasing a tanker aircraft to meet immediate needs, it continues to require additional tankers to keep pace with expanding demands. The process of retiring older aircraft and integrating new platforms capable of longer-duration missions with mid-air refuelling further underlines the necessity of this procurement.