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HAL LCA Mk1A Deal: Govt Seals Rs 62,370 Crore Contract

India signs a Rs 62,370 crore HAL LCA Mk1A deal to acquire 97 fighter jets for the Indian Air Force (IAF).

OM News Desk by OM News Desk
September 25, 2025 04:26 pm
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HAL LCA Mk1A Deal: Govt Seals Rs 62,370 Crore Contract
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New Delhi : HAL LCA Mk1A deal has the Ministry of Defence contracting Hindustan Aeronautics Limited (HAL) for Rs 62,370 crore. The deal covers 97 Light Combat Aircraft (68 fighters and 29 twin-seaters) along with associated equipment for the Indian Air Force, an official statement said on Thursday.

Moreover, HAL will start deliveries during 2027-28 and complete them over six years.

The aircraft will include over 64% indigenous content, with 67 additional items added beyond the previous LCA Mk1A contract signed in January 2021. Additionally, HAL will integrate advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators, further strengthening the government’s Aatmanirbharta initiatives.

Nearly 105 Indian companies will manufacture detailed components for the project. Consequently, HAL expects production to generate around 11,750 direct and indirect jobs per year over six years, boosting India’s aerospace ecosystem.

The acquisition, under the ‘Buy (India-IDDM)’ category of Defence Acquisition Procedure 2020, aligns with the government’s push for indigenisation. The LCA Mk1A represents the most advanced variant of the indigenously designed and manufactured fighter aircraft and will serve as a potent platform to meet IAF operational requirements.

Furthermore, the delivery of the first two fully armed Mk1As from the earlier order helped HAL secure this repeat order worth Rs 67,000 crore.

HAL confirmed it received the third GE 404 engine from US tech giant General Electric (GE) Aerospace to power India’s LCA Mk1A fleet. Meanwhile, the company expects the US firm to deliver the fourth engine by the end of the month, improving the engine supply chain and enabling LCA Mk1A deliveries.

HAL currently operates two production lines in Bengaluru and has started a third line in Nashik to increase fighter jet production. This year, three to four aircraft will roll out from Nashik, with annual production expected to rise to eight planes.

HAL Chairman and Managing Director D.K. Sunil said that if GE delivers 12 GE 404 engines as promised, HAL will produce 12 aircraft by the end of this financial year. Additionally, HAL has ordered 99 GE 404 engines from the US manufacturer.

–IANS

  • OM News Desk
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Tags: HAL defense contractHAL India Air ForceHAL LCA Mk1A dealIAF fighter jets purchaseLCA Mk1A acquisition
OM News Desk

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