Hindustan Aeronautics Ltd signs Rs 62,370 crore deal with Defence Ministry for fighter aircraft

New Delhi, 25 September 2025: The Ministry of Defence signed a contract with state-owned Hindustan Aeronautics Ltd (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A for the Indian Air Force (IAF). The contract is worth over Rs 62,370 crore.

The order consists of 68 fighter jets and 29 twin-seater aircraft with associated equipment. The delivery is targeted to be done in 2027-28 and will be completed within a period of six years. The aircraft will have an indigenous content of more than 64%, with 67 additional items added compared to the previous LCA Mk1A contract signed in January 2021, according to the ministry.

The upgrades will include advanced indigenous systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators. Nearly 105 Indian companies involved in the manufacture of detailed components are reportedly backing the project.

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The production is expected to generate around 11,750 direct and indirect jobs per annum during the six-year period and will give a major boost to the domestic aerospace ecosystem. The acquisition has been undertaken under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020. As per the officials, the deal is in line with the government’s push for indigenization in defense manufacturing.

The LCA Mk1A, the most advanced variant of the indigenously designed and developed fighter aircraft, is expected to strengthen the operational capability of the IAF while furthering India’s Aatmanirbharta (self-reliance) initiatives in defence.

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