‘Red-letter day for us,’ says HAL CMD on defence contract worth ₹62,730 crore

Hindustan Aeronautics Ltd (HAL) on Thursday secured a ₹62,370-crore contract for the procurement of 97 light combat aircraft for the Indian Air Force, including 68 fighter jets and 29 twin-seaters. HAL chairman and MD, D.K. Sunil, described the occasion as a “red letter day” for the company in remarks to the media.

“It is a red-letter day for us. This follow-on order of 97 LCA Tejas Mark 1 Alpha. The significant part is that there will be 70% indigenous content in this order as compared to the earlier one... We will integrate the indigenous radar, EW suite, and many other equipment. This allows us to continue our supply chain,” Sunil said.

HAL chief called the award of the order a testament of the government’s support in building indigenous defence equipment.

“We have already concluded the follow-on order of 113 engines with General Electric. Now, we will be signing the contract with them. This is a very good vote of confidence by the government of India. The work HAL is doing and the indigenous content and the ecosystem we are building and working on, it is an excellent example of how the government is walking the talk of Atmanirbhartha and giving orders so that this will generate jobs downstream, not only in HAL but downstream in all our ecosystem... It is a very big boost for Atmanirbharta,” he said.

Deliveries for these aircraft are expected to begin in 2027-28 and be completed over six years.

The LCA Mk1A will feature over 64% indigenous content, including 67 additional components, surpassing the scope of the previous Mk1A contract signed in January 2021. Advanced, domestically developed systems such as the UTTAM AESA Radar, Swayam Raksha Kavach, and control surface actuators will be integrated into the aircraft, further strengthening Aatmanirbhar Bharat initiatives.

This acquisition falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, highlighting the government’s focus on indigenisation. The Mk1A represents the most advanced version of India’s indigenously designed and manufactured fighter aircraft and is expected to serve as a critical platform to meet the operational needs of the IAF.

“Even though GE engine supplies are facing delays, the MoD’s decision to move ahead with the LCA Mk-1A order reflects strong confidence in Indian manufacturing capabilities. We see this as a positive signal not just for HAL, but for the broader defence ecosystem, as it underlines the government’s commitment to push indigenisation despite external dependencies. In our opinion, this reaffirms the long-term visibility of domestic defence programs and should lift sentiment across the sector,” said Putta Ravi Kumar, analyst–defence & aerospace Sector, Choice Institutional Equities, adding that this sends a strong signal for India’s execution and indigenisation trajectory.