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  1. Govt in final stages of awarding ₹67,000 crore deal to HAL for light combat aircraft Mk1As: Report

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Govt in final stages of awarding ₹67,000 crore deal to HAL for light combat aircraft Mk1As: Report

Upstox

2 min read | Updated on July 22, 2025, 15:53 IST

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SUMMARY

The Indian government is in the final stages of awarding a ₹67,000 crore contract to Hindustan Aeronautics Limited for 97 additional LCA Mk-1A fighter jets to boost the Indian Air Force’s operational readiness.

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HAL has a total market capitalisation of ₹3.27 lakh crore, as of June 27, 2025, as per the data on the NSE.

Shares of Hindustan Aeronautics Ltd were trading in green on Tuesday afternoon.

India is looking to accelerate the induction of fighter jets, mid-air refuellers, and airborne early warning and control (AEW&C) systems to strengthen the operational readiness of its air force, Hindustan Times reported on Tuesday, citing unnamed officials.

An empowered committee chaired by Defence Secretary Rajesh Kumar Singh submitted its recommendations to Defence Minister Rajnath Singh in March.

The committee included senior officials such as the vice chief of air staff, secretary (defence production), DRDO chief, and director general (acquisition).

The government is in the final stages of awarding a ₹67,000 crore contract to Hindustan Aeronautics Limited for 97 additional LCA Mk-1A light combat aircraft, according to the report.

“The panel reviewed every element of capability development and suggested measures to boost the IAF’s operational readiness in a time-bound manner. New fighters, refuellers and AEW&C systems are among the top priorities,” HT quoted an official as saying.

The recommendations come at a time when the air force is grappling with a shortage of fighter squadrons, operating around 30 squadrons against the authorised 42.5.

Air Chief Marshal AP Singh had earlier warned that the IAF must induct 40 fighter jets annually to remain combat-ready.

The committee also reportedly called for greater private sector involvement to enhance self-reliance in aerospace manufacturing.

The defence ministry in May announced plans to fast-track development of an indigenous fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA), with public and private sector participation.

The techno-commercial bids for six mid-air refuellers are expected to be opened shortly, with European, Russian, and Israeli companies in contention, according to the report. The IAF currently operates six Ilyushin-78 tankers, which face maintenance challenges.

The Cabinet Committee on Security is expected to clear the construction of six AEW&C systems based on the Airbus 321 platform.

The development comes against the backdrop of India’s recent strikes on terror and military targets in Pakistan and Pakistan-occupied Kashmir after the Pahalgam attack.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.