Did the Govt Seal a Rs 62,370 Crore Deal with HAL for 97 LCA Mk1A Fighter Jets?

Synopsis
Key Takeaways
- The Ministry of Defence signed a Rs 62,370 crore contract with HAL.
- The procurement involves 97 LCA Mk1A fighter jets.
- Delivery is set to commence in 2027-28.
- The jets will have over 64% indigenous content.
- The project aims to create around 11,750 jobs annually.
New Delhi, Sep 25 (NationPress) The Ministry of Defence has finalized a significant contract worth Rs 62,370 crore with Hindustan Aeronautics Limited (HAL) for the acquisition of 97 Light Combat Aircraft (LCA) Mk1A. This order consists of 68 fighter jets and 29 twin-seater aircraft, along with necessary equipment for the Indian Air Force, as per an official announcement released on Thursday.
The delivery of these aircraft is set to begin in the 2027-28 timeframe and will extend over six years.
These jets will feature an indigenous content exceeding 64 percent, incorporating 67 additional items beyond those included in the earlier LCA Mk1A contract established in January 2021. The integration of cutting-edge, indigenously developed technologies like the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators is expected to bolster the Aatmanirbharta initiatives, according to the statement.
This initiative is backed by a strong vendor network of approximately 105 Indian companies engaged in the production of specific components. The manufacturing process is anticipated to create nearly 11,750 direct and indirect jobs annually over the six-year period, providing a substantial boost to the domestic aerospace sector.
The acquisition falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, aligning with the government’s focus on self-reliance. The LCA Mk1A is regarded as the most advanced version of the indigenously designed and manufactured fighter jets, serving as a robust platform to fulfill the operational needs of the IAF, as stated.
The commencement of deliveries for the first two fully armed Mk 1As from a previous order is a crucial milestone that has enabled HAL to secure this repeat order valued at Rs 67,000 crore.
Earlier this month, HAL reported the receipt of the third GE 404 engine from the US technology leader General Electric (GE) Aerospace to power India’s LCA Mk1A.
The Bengaluru-based defense PSU indicated that while the third GE 404 engine has been delivered, the fourth is expected by the end of the month. Improvements in the engine supply chain will facilitate the timely deliveries of the LCA Mk1A, HAL mentioned in a statement.
Currently, HAL is operating two production lines in Bengaluru and has initiated a third line in Nashik to enhance jet production. This year is projected to see three to four aircraft produced at Nashik, with plans to increase annual output at the new facility to eight planes.
HAL Chairman and Managing Director D.K. Sunil previously stated that if GE fulfills its commitment to supply 12 GE 404 engines, HAL could produce 12 aircraft by the end of this financial year. HAL has placed an order for a total of 99 GE 404 engines from the US manufacturer.