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Thursday, September 25, 2025

Govt seals Rs 62,370 crore deal with HAL to buy 97 LCA Mk1A fighter jets for IAF

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India’s Ministry of Defence has inked a massive Rs 62,370 crore deal with Hindustan Aeronautics Limited (HAL) to supply 97 Light Combat Aircraft (LCA) Mk1A fighters for the Indian Air Force. This includes 68 single-seat fighters and 29 twin-seaters, plus all the necessary gear, as announced in an official statement Thursday.

Deliveries of these advanced jets will kick off in 2027-28 and wrap up over the next six years. What’s exciting is the strong focus on homegrown tech: these aircraft boast over 64% indigenous content, with 67 new Indian-made components added since the last LCA Mk1A contract in January 2021. Key upgrades include the home-developed UTTAM Active Electronically Scanned Array (AESA) radar, Swayam Raksha Kavach electronic warfare system, and control surface actuators. All this ramps up India’s Aatmanirbhar Bharat push for self-reliance in defence.

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The project draws on a network of about 105 Indian companies churning out detailed parts. It should create around 11,750 direct and indirect jobs each year for those six years, giving a huge lift to the country’s aerospace sector.

This purchase falls under the ‘Buy (India-IDDM)’ category in the Defence Acquisition Procedure 2020, aligning perfectly with the government’s drive for indigenisation. The LCA Mk1A stands out as the most cutting-edge version of India’s own-designed and built fighter jet, ready to tackle the Indian Air Force’s key operational needs.

HAL landed this repeat order—valued at about Rs 67,000 crore overall—thanks to progress on the earlier batch. The first two fully armed Mk1A jets from that deal are now gearing up for delivery.

Adding to the momentum, HAL revealed earlier this month that it received the third GE 404 engine from U.S. giant General Electric (GE) Aerospace to power the LCA Mk1A. The fourth engine arrives by month’s end, and smoother engine supplies will speed up jet deliveries, HAL noted.

Right now, HAL runs two production lines in Bengaluru and is firing up a third in Nashik to boost output. Expect three to four aircraft to roll out from Nashik this year, with plans to hit eight per year soon. HAL Chairman and Managing Director D.K. Sunil said if GE delivers the promised 12 GE 404 engines, the company can produce 12 LCA Mk1A jets by the end of this financial year. HAL has already ordered 99 of these engines from the U.S. firm.


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