India's Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, has approved a landmark ₹62,000-crore deal for the procurement of 97 additional Light Combat Aircraft (LCA) TEJAS MK-1A fighter jets from Hindustan Aeronautics Limited (HAL).

This represents the second major order for the TEJAS MK-1A variant, following an earlier contract for 83 aircraft worth approximately ₹48,000 crore, bringing the total order for TEJAS MK-1A jets to 180 units.

The approval comes at a critical juncture for the Indian Air Force (IAF), which is grappling with its lowest combat squadron strength in decades. The IAF currently operates 31 fighter squadrons against a sanctioned strength of 42, with this number set to drop further to 29 squadrons following the retirement of the remaining MiG-21 squadrons in September 2025.

This reduction will bring India's fighter strength dangerously close to Pakistan's current 25 squadrons, while China maintains a formidable fleet of approximately 66 squadrons with over 1,300 fourth-generation aircraft.

Engine Supply Challenges Hampering Production

Despite the substantial order, HAL faces significant production challenges due to delays in engine supply from American manufacturer General Electric (GE). The US company has struggled to deliver the F404-IN20 engines required for the TEJAS MK-1A, with only two engines delivered to HAL as of August 2025.

The original contract signed with GE in 2021 called for the supply of 99 engines for the first batch of 83 aircraft, but GE's production line had been dormant for five years due to a gap in orders between 2016 and 2021.

The engine delivery delays stem from GE's closure of the F404 production line, which was subsequently complicated by global supply chain disruptions during the COVID-19 pandemic. The first engine was finally delivered in March 2025, with the second arriving in July. GE has committed to delivering two engines monthly starting from August 2025, with a total of 12 engines expected by the end of the current financial year.

Sources indicate that GE currently maintains a backlog of approximately 24-26 engines, which could reach 30 units by mid-2025. The company has pledged to scale up production to 24-26 engines annually by 2026-27 to meet HAL's requirements for both the existing 83-aircraft order and the newly approved 97-unit contract.

Production Capacity Enhancement At Multiple Facilities

HAL has been working to expand its production capabilities to meet the increased demand for Tejas fighters. The company currently operates two assembly lines in Bengaluru with a combined capacity of 16 aircraft per year. A third production line at HAL's Nashik facility, inaugurated in April 2023 with an investment of over ₹150 crore, is expected to add eight more aircraft annually, bringing the total capacity to 24 jets per year.

HAL is planning a fourth assembly line at Nashik to further increase production capacity from 24 to 32 aircraft annually, though this expansion is contingent on regular engine supply from GE. The company has also established a parallel private-sector supply chain comprising VEM Technologies for centre fuselage, Alpha for rear fuselage, and L&T for wings, which is expected to contribute an additional six aircraft per year.

Despite the engine supply constraints, HAL officials have maintained that the company will deliver 12 TEJAS MK-1A aircraft by the end of the 2025-26 financial year. The company has already built six aircraft that are currently flying with reserve engines as a temporary measure while awaiting GE deliveries.

Indigenous Content And Technology Advancement

The TEJAS MK-1A represents a significant advancement over the original MK-1 variant, featuring 43 improvements including an Active Electronically Scanned Array (AESA) radar, Beyond Visual Range (BVR) missile capability, Electronic Warfare (EW) suite, and Air-to-Air Refuelling (AAR) capability. The indigenous content in the new batch is expected to exceed 65 percent, compared to 50 percent in the earlier variants.

Out of 344 systems fitted into the aircraft, 250 are sourced from Indian manufacturers, reflecting the government's commitment to the "Make in India" and "Atmanirbhar Bharat" (Self-Reliant India) initiatives. The program is expected to generate significant opportunities for small and medium enterprises engaged in the defence sector across the country.

Strategic Importance Amid Regional Security Challenges

The TEJAS MK-1A acquisition assumes critical importance in the context of India's evolving security environment. The retirement of the MiG-21 fleet, which served the IAF for over six decades since 1963, will create a capability gap that needs to be filled urgently. The MiG-21, despite its distinguished service record including participation in the 1965 and 1971 Indo-Pakistani wars and the 2019 Balakot airstrikes, had earned the unfortunate moniker "Flying Coffin" due to over 400 accidents resulting in approximately 200 pilot fatalities.

India's strategic position is further complicated by China's rapid military modernisation, particularly in air power. China's People's Liberation Army Air Force operates advanced fifth-generation aircraft including the J-20 and J-31 stealth fighters, alongside over 1,300 fourth-generation aircraft. This creates an urgent need for India to induct 400-450 advanced combat jets to maintain strategic parity.

The Pakistan Air Force currently fields 25 squadrons comprising approximately 450 aircraft, including F-16s, JF-17s, and Mirage variants. While India maintains qualitative superiority with platforms like the Rafale and Su-30MKI, the numerical gap in squadrons remains a concern for defence planners.

Delivery Projections

HAL has committed to delivering all 180 TEJAS MK-1A aircraft (83 from the first order plus 97 from the new contract) by 2031-32 as per the original timeline. However, this ambitious target depends heavily on consistent engine supply from GE and the resolution of current production bottlenecks.

The first TEJAS MK-1A from HAL's Nashik facility is expected to roll out by the end of July 2025, with integration and test firing of the Astra air-to-air missile scheduled for early August. HAL plans to deliver three to four aircraft from the Nashik plant in the current financial year, gradually scaling up production as engine availability improves.

Summary

Beyond meeting domestic requirements, HAL remains optimistic about the export potential of the TEJAS MK-1A. The aircraft's competitive cost and advanced capabilities make it an attractive option for countries seeking versatile light combat aircraft. HAL is actively engaged in discussions with potential international clients, with officials expressing confidence that export agreements secured in 2025 or 2026 will be fulfilled smoothly once engine deliveries stabilise.

The successful execution of this ₹62,000-crore deal represents a crucial test for India's indigenous defence manufacturing capabilities. While challenges remain, particularly regarding engine supply chains and production scaling, the project embodies India's strategic vision of achieving self-reliance in critical defence technologies while building a robust aerospace industrial ecosystem.

Agencies (With IDN Inputs)