The IAF had issued a tender for 83 LCAs about two years ago and the project was stuck over the pricing issue as the government and the Air Force felt that the price offered by the HAL was slightly higher

Hindustan Aeronautics Limited (HAL) is expected to ink the final contract by the cost committee of the Defence Ministry for the manufacturing of 83 TEJAS Mk-1A at the DefExpo 2020 event slated to be held from 5th to 8th of next month at Lucknow. As per the requirements presented by the IAF, the first TEJAS Mk-1A fighter would be supplied in 36 months from the signing of the contract. The new TEJAS Mk-1A plane will have advanced avionics and radars than the initial 40 TEJASs being supplied to the Air Force.

TEJAS fighter has been designed an developed completely by the Defence Research and Development Organisation (DRDO). Earlier this year, DRDO chief G Satheesh Reddy had presented the Final Operational Clearance (IOC) certificate for the TEJAS to the IAF and the Defence Ministry at the Aero-India.

Sources said it would be the first-of-its-kind order for any Indian firm and would give major boost for the indigenous defence industry. More than 65 per cent funds of the Rs 45,000 crore order would remain within the country and help in creating jobs in both private and public sectors.

The Acceptance of Necessity given by the Defence Ministry over two years ago was Rs 50,000 crore but the price determined by the ministry's cost committee was reduced to around Rs 45,000 crore.

The first TEJAS Mk-1A aircraft is likely to be produced by 2023 once the HAL is done with the supply of the initial 40 planes in the Initial Operational Clearance and Final Operational Clearance standards which have already taken part and proven themselves in the IAF operational exercises such as the Exercise Gagan Shakti.

TEJAS Mk-1A is the advanced version of Tejas aircraft. 

The HAL has so far supplied 16 TEJAS fighter to the service which has based them at Sulur in Tamil Nadu under 45 Squadron.