Indian MoD Inks $6.56B Deal for Tejas Jets at Aero India 2021

  • Our Bureau
  • 11:14 AM, February 3, 2021
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Indian MoD Inks $6.56B Deal for Tejas Jets at Aero India 2021
Signing of Tejas contract during Aero India 2021.

Indian Ministry of Defence today sealed a $6.56 billion (INR 48,000 Crore) with Hindustan Aeronautics Limited for 83 Tejas Light Combat Aircraft (LCA).

“The contract for 83 LCA MK1A was formally handed over by MoD to HAL during our today’s inaugural function of Aero India 2021,” HAL tweeted Wednesday afternoon.

Indian MoD Inks $6.56B Deal for Tejas Jets at Aero India 2021
HAL's new facility to build Tejas jets

India’s Cabinet Committee on Security (CCS) today approved the contract on January 13. The government will procure 73 LCA Tejas Mk-1A fighter aircraft and 10 LCA Tejas Mk-1 Trainer aircraft.

It is the first “Buy (Indian-Indigenously Designed, Developed and Manufactured)” category procurement of combat aircraft with an indigenous content of 50% which will progressively reach 60% by the end of the programme.

Indian MoD Inks $6.56B Deal for Tejas Jets at Aero India 2021
Indian Defence Minister Rajnath Singh

“The indigenous content of LCA-Tejas is 50% in Mk1A variant which will be enhanced to 60,” Defence Minister Rajnath Singh further had said.

HAL has also built a new 35-acre facility to enable production of 16 Tejas jets per year, up from current 8.

All 83 jets would be delivered to the Air Force in the next decade commencing 36 months from contract signing.

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