The project, backed by 105 Indian companies, will create 11,750 jobs annually for six years, boosting India’s aerospace sector and cutting foreign defense imports
New Delhi
The Ministry of Defence has finalized a ₹62,370 crore contract with Hindustan Aeronautics Limited (HAL) for 97 Light Combat Aircraft (LCA) Mk1A to strengthen the Indian Air Force. The order includes 68 fighter jets and 29 twin-seaters, with deliveries scheduled to begin in 2027-28 and completed over six years.
The LCA Mk1A is India’s most advanced indigenously designed fighter aircraft. The new batch will have 64 percent indigenous content, featuring 67 upgrades compared to the earlier contract of 2021. Among these enhancements are the UTTAM AESA radar, Swayam Raksha Kavach electronic warfare system, and indigenous control surface actuators, boosting the Aatmanirbhar Bharat initiative.
The project will be supported by a vendor base of around 105 Indian companies, helping create nearly 11,750 direct and indirect jobs annually for six years. Officials said the contract would give a major push to India’s aerospace ecosystem and reduce dependency on foreign defence imports.
HAL is preparing for large-scale production by expanding its capacity. Currently, two production lines operate in Bengaluru, while a third has started in Nashik. Three to four aircraft are expected to roll out this year from Nashik, with annual production later rising to eight.
HAL has ordered 99 GE 404 engines from General Electric to power the jets. Three engines have been delivered so far, with a fourth due this month. If the US firm supplies 12 engines on time, HAL aims to produce 12 aircraft by year-end.
This acquisition, under the “Buy (India-IDDM)” category of Defence Acquisition Procedure 2020, is seen as a major step in modernizing the IAF fleet with indigenous technology.
