India inks ₹62,370 cr deal with HAL for 97 Tejas Mk-1A jets, to replace MiG-21 squadrons
New Delhi: In what is being billed as the largest-ever order for an indigenous fighter jet, the Ministry of Defence (MoD) has signed a contract worth over ₹62,370 crore with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Tejas Mk-1A aircraft.
The deal, finalised on September 25, 2025, covers 68 single-seat fighters and 29 twin-seat trainers, along with associated equipment, for the Indian Air Force (IAF). Deliveries are set to begin in 2027-28 and will be completed over six years.
The procurement has been classified under the 'Buy (India-IDDM)' category of the Defence Acquisition Procedure 2020.
The Tejas Mk-1A jets will replace ageing platforms, with the announcement coinciding with the retirement of the IAF’s last two MiG-21 squadrons on September 26.
According to the MoD, the latest variant will feature an indigenous content of over 64%, incorporating 67 additional items compared to the earlier Mk-1A order of 83 jets worth ₹46,898 crore signed in 2021.
Among the advanced systems being integrated are the UTTAM Active Electronically Scanned Array (AESA) radar, the Swayam Raksha Kavach electronic warfare suite, and indigenously developed actuators.
Officials noted that nearly 105 Indian companies are part of the Tejas supply chain, with production expected to generate about 11,750 direct and indirect jobs annually over the contract period.
Separately, sources confirmed that a deal with General Electric (GE) for 113 F-404 engines, which power the Tejas Mk-1A, has also been finalised. An official announcement on that is expected shortly.
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