Defence Ministry Issues ₹1 Lakh Crore Tender for 60 Multirole Transport Aircraft for IAF
The Ministry of Defence has floated a tender valued at approximately ₹1 lakh crore to procure 60 multirole transport aircraft (MTA) for the Indian Air Force (IAF). The initiative is aimed at replacing older cargo platforms, bolstering strategic airlift capability, and advancing domestic aerospace production through partnerships between Indian firms and global original equipment manufacturers.
What Happened
According to a senior Defence Ministry official, the tender has been issued to multiple domestic entities, including Hindustan Aeronautics Limited (HAL) and leading private sector defence companies. The project is designed as an Indian-led programme where domestic firms will collaborate with international aerospace manufacturers to produce the aircraft locally.
Under the proposed structure, around 20% of the 60 aircraft are expected to be procured in a fly-away condition. The remaining aircraft will be manufactured within India through joint ventures between the selected Indian companies and original equipment manufacturers. Domestically built units are expected to feature over 60% indigenous content.
Key Highlights
- Tender Value and Scale: The tender covers 60 multirole transport aircraft with an estimated value of around ₹1 lakh crore.
- Industry Partnerships: Tata has partnered with U.S. manufacturer Lockheed Martin to propose the C-130J Super Hercules, while Mahindra Defence has aligned with Brazilian aerospace firm Embraer to offer the C-390 Millennium.
- Manufacturing Breakdown: Approximately 20% of the fleet will arrive in fly-away condition, with the remaining 80% to be manufactured in India.
- Indigenous Content: The aircraft manufactured domestically are planned to contain more than 60% indigenous content.
- Multi-Mission Roles: Beyond transporting personnel, equipment, and military assets across long distances, the aircraft could potentially be configured to perform aerial refuelling missions.
Why This Matters
The acquisition addresses the IAF’s requirement to phase out ageing cargo and transport platforms while significantly expanding its long-range airlift and logistical capacity. Equipping these aircraft with potential aerial refuelling capabilities would also supplement the force’s tanker fleet.
Additionally, the programme is expected to deepen the domestic aerospace manufacturing base by integrating global supply chains with Indian industry and establishing high-indigenous-content production lines in the country.
The MTA project forms part of a wider fleet overhaul for the IAF. Alongside this procurement, the IAF is inducting approximately 70 C-295 transport aircraft under a programme with Airbus and Tata, where the majority will be built in India. The force has also issued a tender for 114 multirole fighter aircraft and is seeking more than 100 trainer aircraft to replace its ageing Hawk fleet and support expanded fighter squadrons.
What to Watch Next
Domestic bidders and their international partners will advance their proposals for the tender. Key milestones will include the evaluation of the competing platforms—such as the C-130J Super Hercules and the C-390 Millennium—alongside joint venture formulations to meet the required 60% indigenous content threshold for local manufacturing.
Frequently Asked Questions
What is the total value and size of the MTA tender?
The tender is valued at approximately ₹1 lakh crore for the procurement of 60 multirole transport aircraft for the Indian Air Force.
Which companies and aircraft models are competing?
Confirmed tie-ups include Tata partnering with U.S. firm Lockheed Martin to offer the C-130J Super Hercules, and Mahindra Defence partnering with Brazilian firm Embraer to offer the C-390 Millennium. Hindustan Aeronautics Limited (HAL) and other private defence firms have also received the tender.
How many aircraft will be built in India?
About 20% of the aircraft are planned for induction in fly-away condition, while the remaining 80% will be manufactured domestically with over 60% indigenous content.
Source: Report based on details published by The Hindu.