On September 25, 2025, the Ministry of Defence (MoD) signed a contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A for the Indian Air Force. The contract is valued at Rs. 62,370 crore (excluding taxes) and includes 68 fighters and 29 twin seaters, along with associated equipment. Delivery is expected to commence during 2027-28 and be completed over six years. The aircraft will have an indigenous content of over 64%, with 67 additional items, and will incorporate advanced indigenously developed systems, including the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators. The project is supported by a robust vendor base of nearly 105 Indian companies, and production is expected to generate close to 11,750 direct and indirect jobs per year for six years. This acquisition falls under the ‘Buy (India-IDDM)' category of Defence Acquisition Procedure 2020 and is in line with the Government's thrust on indigenisation. The Release ID for this announcement is 2171108.
Key Entities Referenced
Ministry of Defence (MoD): The primary entity signing the contract for aircraft procurement.
Hindustan Aeronautics Limited (HAL): The company contracted to provide the LCA Mk1A aircraft.
Light Combat Aircraft (LCA) Mk1A: Type of aircraft being procured in the agreement.
Defence Acquisition Procedure 2020: The acquisition procedure under which the procurement is categorized.
Indian Air Force: The recipient of the LCA Mk1A aircraft.
Ministry of Defence
MoD signs Rs. 62,370 crore contract with HAL for
procurement of 97 LCA Mk1A aircraft for IAF
Posted On: 25 SEP 2025 2:38PM by PIB Delhi
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 September 25, 2025.
The delivery of these aircraft would commence during 2027-28 and be completed over a period of six years.
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.
The project 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.
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.****
VK/SR/KB
(Release ID: 2171108)