Mega deal worth Rs 66,500 crore for 97 Tejas Mark-1A jets to be signed today: Report

The Ministry of Defence and Hindustan Aeronautics Limited (HAL) are set to sign a contract for 97 Tejas Mark-1A jets today, marking the biggest deal for the indigenous fighter aircraft, defence sources told India Today.

The Rs 66,500 crore deal is expected to be officially announced on Thursday, a day before the Indian Air Force retires its last two squadrons of MiG-21 fighter jets. This contract follows an earlier agreement made in February 2021 for 83 Tejas Mark-1A aircraft worth Rs 46,898 crore, which has faced delays in its timelines.

On August 19 this year, the Cabinet Committee on Security, led by Prime Minister Narendra Modi, approved the acquisition of an additional 97 Tejas Mark-1A jets, clearing the way for this significant contract.

The indigenous fighter aircraft programme aims to boost indigenisation and create business opportunities for small and medium enterprises in India's defence sector. PM Modi has promoted the revival of Hindustan Aeronautics Limited, which has received orders to manufacture various indigenous fighter aircraft, helicopters, and engines during his tenure.

The LCA Mark 1A jets feature advanced avionics and radars compared to the initial 40 LCAs supplied to the Air Force, with indigenous content expected to exceed 65 per cent.

In related developments, a deal with General Electric for the supply of 113 F-404 engines, which power the Tejas fighters, has also been finalised. The announcement on the engine contract is expected soon after the Tejas Mark-1A deal signing.