The procurement of 97 upgraded TEJAS MK-1A fighter jets from Hindustan Aeronautics Ltd (HAL) is set to commence in the financial year 2026–27 (FY27), under a substantial ₹67,000-crore plan that marks a significant phase in India’s indigenous fighter jet program. This large-scale order, expected to receive Cabinet approval soon, follows the earlier procurement of 83 TEJAS MK-1A aircraft in 2021, which was valued at approximately ₹48,000 crore.

A key highlight of this new procurement is HAL’s increased focus on indigenisation. The domestic share of components in the upgraded TEJAS has risen to 60%, up from around 50% in previous versions. Notably, critical systems such as radar and high-frequency radios are now being manufactured by Bharat Electronics Ltd (BEL), reflecting a strategic push towards self-reliance in defence manufacturing. This aligns with the government’s ‘Make in India’ initiative and aims to strengthen the national defence industrial base.

The per-unit cost of the advanced TEJAS MK-1A is estimated at around ₹600 crore, higher than previous batches. This increase is attributed in part to foreign exchange volatility affecting the cost of the US-imported General Electric F404 engine that powers the aircraft. Supply chain issues related to these engines have recently been resolved, with GE committing to deliver 12 engines by December 2025, ensuring that production can proceed as planned.

Production will be spread over four to five years, with HAL planning to scale up output to 24 aircraft annually by leveraging its new assembly line in Nashik, in addition to existing facilities in Bengaluru. 

This expansion is designed to meet the Indian Air Force’s (IAF) growing requirements and to replace ageing fleets such as the MiG-21, MiG-27, and Jaguars. The enhanced production capability will also support job creation and potentially boost defence exports, as the TEJAS has attracted interest from several countries in Asia, Africa, and Latin America.

The upgraded TEJAS MK-1A features significant technological advancements, including improved avionics, advanced radar systems, and enhanced weapon-carrying capabilities. The order for 97 additional jets will bring the total number of TEJAS MK-1A aircraft on order to 180, providing a substantial boost to the IAF’s operational strength and marking a major milestone for India’s indigenous fighter jet program.

The upcoming procurement not only strengthens the IAF’s combat capabilities but also represents a strategic commitment to indigenous defence manufacturing, technological self-reliance, and the long-term modernisation of India’s aerospace sector.

Based On Money Control Report