Hindustan Aeronautics Limited (HAL) has announced that the Government of India has approved the procurement of 97 Light Combat Aircraft (LCA) Tejas Mk-1A fighter jets worth ₹62,000 crore. The approval was granted by the Cabinet Committee on Security (CCS) on August 19, 2025, the company confirmed in its stock exchange filing on August 21, 2025.
According to HAL’s statement, the order includes the aircraft along with associated equipment for the Indian Air Force (IAF).
This procurement marks a major milestone for India’s indigenous Tejas programme, aimed at replacing the ageing MiG-21 fleet and enhancing the country’s self-reliance in defence manufacturing.
Market Impact
Despite the mega deal, HAL shares traded flat, slipping 0.16% to ₹4,446.40 on the NSE shortly after market opening.
Strategic Importance
The LCA Mk-1A is an upgraded version of the Tejas fighter jet, designed to boost the IAF’s combat capabilities with enhanced avionics, better maintainability, and advanced weapon systems.
This is the second major order for the indigenous fighter aircraft. Earlier, in February 2021, HAL had secured a large contract for the Tejas Mk-1A. Deliveries from the new order are expected to commence in FY26, starting with six aircraft, following the resolution of earlier engine supply issues.
Boost to ‘Make in India’
The order strengthens India’s defence manufacturing ecosystem under the ‘Make in India’ and Atmanirbhar Bharat (self-reliant India) initiatives. It also comes in line with India’s broader push to modernise its air force capabilities and reduce dependency on foreign defence imports.
