NEW DELHI: India is poised to sign its biggest-ever defence contract — a ₹66,500 crore deal for 97 Tejas Mark-1A fighter jets with Hindustan Aeronautics (HAL) — even as the IAF awaits delivery of the first aircraft from an earlier order of 83. The signing could take place as early as Thursday, defence sources told TOI.
Squadron strength crisis
The contract comes just a day before the retirement of 36 MiG-21s, which will reduce the IAF to 29 fighter squadrons — its lowest-ever strength. Each squadron typically has 16–18 jets. By comparison, Pakistan maintains 25 squadrons and is expected to induct at least 40 Chinese J-35A stealth fighters soon. China, meanwhile, operates more than four times India’s combined fighter and bomber strength.
Operational pressure
An internal IAF review after Operation Sindoor — where Pakistan deployed Chinese J-10s armed with 200 km-range PL-15 missiles — concluded that even the sanctioned strength of 42.5 squadrons will not suffice against a joint China–Pakistan threat. Air Chief Marshal A P Singh has warned that the IAF is “very badly off in numbers” and needs at least 40 new fighters every year to stay combat ready.
HAL’s delayed deliveries
The earlier ₹46,898 crore order for 83 Tejas Mark-1A jets, placed in February 2021, was to be delivered between 2024 and 2028. But deliveries have not begun yet. HAL says it can hand over the first two jets by October, once weapon trials are cleared. The IAF, however, insists acceptance will only follow successful certification of Astra BVR missiles, Israeli-origin Elta ELM-2052 radar integration, and other systems.
Engines and production capacity
GE Aviation is stabilising supplies of F404 engines contracted in 2021 for ₹5,375 crore. Three engines have been delivered so far, with seven more due by December and 20 annually thereafter. For the new 97 jets, HAL will sign a fresh $1 billion deal with GE for 113 additional engines.
HAL says production will scale from the current 16–20 jets per year to 24–30 annually, with a third assembly line at Nashik supplementing the two in Bengaluru, alongside private-sector suppliers.
Balancing urgency and accountability
Sources said the IAF initially wanted the new order deferred until deliveries from the 2021 contract began. But the defence ministry opted to proceed, citing budget timelines. The initial tranche of payments will be released to HAL upon signing.
