Israel Aerospace Industries (IAI), a prominent defence manufacturer, is prepared to meet India’s 30 per cent ‘Made in India’ requirement for the contract to supply six mid-air refueler aircraft.

The ₹8,000-crore deal has now only IAI left as the sole bidder after other contenders failed to meet the necessary conditions, including indigenous content thresholds.

Yehuda Lahav, Executive Vice President at IAI, emphasised that the company fully aligns itself with the Indian government's mandate for local content. He stated that while he could not comment on the precise location where the aircraft will be prepared, IAI is committed to fulfilling any local content obligations required by Indian regulations.

The contract foresees the modification of six second-hand Boeing 767 commercial planes, transforming them into tanker aircraft to be deployed with the Indian Air Force. This retrofit would extend the operational capabilities of the IAF by enabling longer missions through mid-air refuelling, a vital asset for expanding air operations.

India’s Air Force has operated a fleet of six Russian-origin Il-78 mid-air refuelling aircraft based in Agra, supporting various fighter aircraft missions for both the Air Force and the Navy. Despite multiple attempts over the past 15 years to procure newer refuellers, India has faced challenges preventing the acquisition of additional aircraft.

The recent strategy included wet-leasing tanker aircraft to temporarily meet operational needs. However, the IAF requires far greater numbers as it phases out older platforms and enhances its combat endurance with a modern fleet capable of extended missions at higher readiness levels.

IAI’s willingness to incorporate local offsets reflects India's growing push for self-reliance in defence manufacturing and technology transfer. This contract marks a significant step in aligning foreign procurement with ‘Atmanirbhar Bharat’ policies aiming to boost indigenous production and skills development.

The competitive process initially involved Russian and European defence firms, but IAI’s readiness to comply with the local industry participation and offset norms allowed it to become the sole vendor. This position strengthens bilateral defence ties and supports India’s ambition to indigenise strategic defence capabilities.

The IAI deal represents a critical advancement in India’s air refuelling capacity, better equipping the IAF for multidimensional operations and enhancing interoperability with allied platforms. The integration of ‘Made in India’ content further fuels domestic aerospace and defence sector growth, paving the way for deeper industrial collaboration.

Based On ANI Report