Indian MoD Signs Biggest HAL Contract for 97 LCA Mk1A Jets

The Indian Ministry of Defence signed a Rs. 62,370 crore (approximately $7 billion) contract with Hindustan Aeronautics Limited (HAL) to procure 97 Light Combat Aircraft (LCA) Mk1A jets for the Indian Air Force on September 25, 2025. The deal includes 68 single-seat fighters and 29 two-seat trainer versions, along with related equipment. This represents a major boost to India’s homegrown Tejas fighter fleet under the Make in India defense initiative.

HAL will begin delivering these jets in 2027–28, with all aircraft to be handed over within about six years. This is the largest order yet for the Mk1A fighter. It follows an earlier contract, signed in January 2021, for approximately 83 Tejas Mk1A jets, valued at roughly Rs. 48,000 crore. The addition of 97 modern jets will help modernize the IAF’s fighter fleet, gradually replacing ageing aircraft such as MiG-21s and MiG-27s.

Indian MoD Signs Rs. 62,370 Crore Contract With HAL for 97 LCA Mk1A Jets. (Via PIB)

The Mk1A is a significantly upgraded variant of India’s home-grown light fighter. It features over 64% indigenous content and 67 additional locally-made components beyond the earlier version. The integration of advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators.

This contract falls under the “Buy (India-IDDM)” procurement category and aligns with the government’s Aatmanirbhar Bharat initiative. Production will draw on a broad domestic supply chain, with approximately 105 Indian companies expected to manufacture parts for these jets. The project is expected to generate approximately 11,750 direct and indirect jobs annually over a six-year period. Such local involvement strengthens India’s aerospace ecosystem.

The Mk1A’s advanced radar, avionics and weaponry will further enhance India’s air combat capabilities. India currently has a contract for 180 Tejas Mk1A jets, including the initial order of 83 jets from 2021. This steady procurement underlines the strategic shift toward self-reliant air power. The LCA Mk1A is the most advanced variant of the indigenously designed & manufactured fighter aircraft and will serve as a potent platform to meet the operational requirements of the IAF. The contract demonstrates how Make in India defense initiatives can enhance both national security and the domestic manufacturing industry.