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Big Boost for Indian Air Force: Centre Inks ₹62,370 Crore Pact with HAL for 97 Tejas Jets, Delivery in 2027

The Rs 62,370 crore deal for 97 Tejas Mk1A jets aims to boost IAF squadron strength and generate nearly 11,750 aerospace jobs annually over six years, officials said.

  • On September 25, 2025, the Ministry of Defence finalized an agreement with Hindustan Aeronautics Limited to acquire 97 Tejas Mk1A jets, including both single-seat fighters and twin-seat trainers, to strengthen the Indian Air Force fleet.
  • This contract follows the Cabinet Committee on Security's approval on August 19, 2025, and builds on an earlier February 2021 deal for 83 Tejas jets amid the IAF's reduced squadron strength.
  • The contract encompasses the acquisition of a total of 97 Tejas aircraft for the Indian Air Force, comprising 68 single-seat combat jets and 29 twin-seat trainer variants, each featuring more than 64 percent indigenous components and incorporating 67 new domestically developed items beyond those in the previous agreement.
  • The Rs 62,370 crore contract is intended to phase out the aging MiG-21 fleet by delivering 97 Light Combat Aircraft starting from 2027-28, with production spanning six years and creating nearly 11,750 employment opportunities each year across direct and indirect roles.
  • The contract supports the 'Buy ' policy, strengthens the IAF’s operational capabilities, advances domestic defense manufacturing, and boosts the aerospace ecosystem and supply chain.
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The Ministry of Defense signed a deal with HAL worth ₹62,370 crore. The IAF will receive 97 Tejas LCA Mk1A aircraft – 68 fighters and 29 trainers. Deliveries will begin in 2027-28 and will be completed in six years. 64% indigenous, with new technologies like the Uttam radar. 105 companies will be involved, creating 11,750 jobs annually.

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India Today broke the news in India on Thursday, September 25, 2025.
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