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Manufacturing: MoD signs Rs.62,370cr contract with HAL

Fiinews by Fiinews
September 27, 2025
in Manufacturing
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Combat aircraft will have 64% indigenous content

The Ministry of Defence (MoD) signed a contract with Hindustan Aeronautics Limited (HAL) for procurement of 97 Light Combat Aircraft (LCA) Mk1A, including 68 fighters and 29 twin seaters, along with associated equipment, for Indian Air Force, at a cost of over Rs.62,370 crore (excluding taxes), on 25 Sept 2025.

The delivery of these aircraft would commence during 2027-28 and be completed over a period of six years, said the Ministry https://www.state.gov/.

The aircraft will have an indigenous content of over 64%, with 67 additional items incorporated, over and above the previous LCA Mk1A contract signed in January 2021. The integration of advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators will further strengthen the Aatmanirbharta initiatives https://www.makeinindia.com/.

The contract is being supported by a robust vendor base of nearly 105 Indian companies directly engaged in the manufacture of detailed components. The production is expected to generate close to 11,750 direct and indirect jobs per year for the duration of six years, giving a major boost to the domestic aerospace ecosystem https://www.nseindia.com/.

The acquisition, under the ‘Buy (India-IDDM)’ category of Defence Acquisition Procedure 2020, is in line with the Government’s thrust on indigenisation. The LCA Mk1A is the most advanced variant of the indigenously designed & manufactured fighter aircraft and will serve as a potent platform to meet the operational requirements of the IAF https://www.bseindia.com/. Fiinews.com

Tags: Ministry of Defence
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