The Narendra Modi-led Cabinet Committee on Security (CCS) Wednesday cleared the much awaited Rs 48,000-crore deal for 83 LCA (Light Combat Aircraft) Tejas aircraft, which will see a greater collaboration between state-owned Hindustan Aeronautics Limited (HAL) and private firms as part of ‘Make in India’.

With the CCS now clearing the deal, the Indian Air Force (IAF) is expected to sign a contract with HAL next month when India’s air show Aero India takes off in Bengaluru.

According to the plan, HAL will deliver 73 Tejas Mk 1A and 10 Tejas Mk 1 trainers by 2026.

Announcing the decision, Defence Minister Rajnath Singh tweeted saying that the deal worth about Rs 48,000 crore will strengthen IAF’s fleet of homegrown fighter jet LCA Tejas.

“This deal will be a game changer for self-reliance in the Indian defence manufacturing,” he said, adding that the LCA Tejas is going to be the backbone of the IAF fighter fleet in years to come.

“LCA-Tejas incorporates a large number of new technologies many of which were never attempted in India. The indigenous content of LCA-Tejas is 50% in Mk1A variant which will be enhanced to 60%,” he added.

 

Singh also said the HAL has already set up second line manufacturing facilities at its Nasik and Bengaluru divisions.

“Equipped with the augmented infrastructure, the HAL will steer LCA-Mk1A production for timely deliveries to the IAF,” he added.

The Defence Ministry in a statement said the cost of the deal was Rs 45,696 crore, besides design and development of infrastructure sanctions worth Rs 1,202 crore.

The Cabinet has also approved infrastructure development by the IAF under the project to enable them handle repairs or servicing at their base depot so that the turnaround time would get reduced for mission critical systems and would lead to increased availability of aircraft for operational exploitation, the statement said.