Inside India’s Biggest Tejas Jets Deal: Rs 66,500 Cr Pact With HAL Set to Be Signed Today

In a landmark move for India’s defence push, the Ministry of Defence (MoD) and Hindustan Aeronautics Limited (HAL) are set to sign a historic contract today for the procurement of 97 additional Tejas Mk-1A fighter jets, in a deal valued at Rs 66,500 crore.Notably, this is the largest-ever contract under the Tejas MK-1A programme, expanding the Indian Air Force's indigenous fighter fleet. The proposal was initially cleared by the Defence Acquisition Council (DAC) on 30 November 2023, with the Request for Proposal (RFP) issued on 13 April 2024. The Cabinet Committee on Security (CCS) gave its final approval on 19 August 2025, paving the way for today’s signing.Currently, the Tejas Mk-1A jets are powered by GE-supplied engines, though HAL is working

to enhance localisation in future production. To meet delivery schedules, HAL plans to ramp up its current production capacity from 18 jets per year to 28 jets per year. The aircraft will be manufactured at HAL’s Bengaluru and Nashik facilities.The deal not only strengthens India’s air power but also underscores the government’s push for ‘Atmanirbhar Bharat’ by boosting indigenous manufacturing capabilities. With the addition of 97 jets, the Tejas Mk-1A fleet will see a substantial increase, marking a key milestone in India’s journey towards self-reliance in defence production.Meanwhile, the legendary Russian-origin MiG-21 fighter jets, which have been the backbone of the Indian Air Force (IAF) for over six decades, are set to retire on September 26 at a decommissioning ceremony in Chandigarh, where the aircraft was first inducted in 1963. The farewell event will include a ceremonial flypast, water cannon salute, and participation from IAF pilots, including Squadron Leader Priya Sharma. Air Chief Marshal A P Singh, the IAF chief, will fly the last sortie of the number 23 Squadron, nicknamed "Panthers", with the call sign 'Badal 3'.The ceremony will be attended by Defence Minister Rajnath Singh, Chief of Defence Staff General Anil Chauhan, Army Chief Gen Upendra Dwivedi, Navy Chief Admiral Dinesh K Tripathi, and six former IAF chiefs: A Y Tipnis, S Krishnaswamy, S P Tyagi, P V Naik, B S Dhanoa, and R K S Bhadauria. Officials from the Defence Ministry, Defence Research and Development Organisation, and Hindustan Aeronautics Limited will also be present.The program will feature a display by the IAF’s skydiving team "Akash Ganga", flying from 8,000 feet, followed by a MiG-21 flypast with precision drills and an aerial salute. The aircraft will fly in three-aircraft 'Badal' and four-aircraft 'Panther' formations. The Surya Kiran aerobatic team and modern fighters, including the Jaguar and the Tejas, will also participate. Tejas is a single-engine multi-role fighter designed for air defence, maritime reconnaissance, and strike missions.The MiG-21, first inducted in 1963, became the IAF’s workhorse, with more than 870 jets procured over the years. The supersonic aircraft played key roles in the 1965 and 1971 wars with Pakistan, the 1999 Kargil conflict, and the 2019 Balakot airstrikes.