India

In a big boost to the Make in India initiative, the Cabinet Committee on Security, headed by the Prime Minister of India, has approved the acquisition of 97 units of LCA Mk-1A fighter jets from Hindustan Aeronautics Limited for the Indian Air Force. According to an NDTV report, the order is valued at approximately ₹62,000 crore.

This is the second major order given to the Hindustan Aeronautics Limited; the first order was for 83 jets costing around ₹48,000 crore, placed in February 2021. With this new order by the Indian Air Force, the LCA Mk-1A jets is now stands at 180.

The LCA Mk-1A is an upgraded, indigenous version of the Tejas fighter jet, designed for enhanced combat capabilities. The LCA Mk-1 will be the successor of mighty MIG-21 fleet which has served Indian Air Force for 60 years, which will be retiring soon.

The delivery for the first order which was placed in February 2021 of 83 jets costing ₹48,000 crore is expected to begin soon, with six jets scheduled for delivery in the fiscal year 2025-26.

HAL has faced delivery delays for the LCA Mk-1A jets mainly because of engine supply constraints with the F404-IN20 engines supplied by GE Aerospace. However, the supply situation of these engines is now improving, helping HAL to move forward with production.

The manufacturing of the LCA Mk-1A jets is being conducted at HAL’s production plants located in Bengaluru and Nashik. These facilities handle the assembly and development of the fighter jets as part of India’s indigenous defense manufacturing effort.

The indigenous Tejas program is a key initiative to enhance India’s defense self-reliance by developing advanced fighter jets domestically. It also plays an important role in supporting numerous small and medium enterprises (SMEs) across the Indian defense sector, fostering growth and innovation within the industry.

Following the announcement of the ₹62,000 crore order for 97 more LCA Mk-1A jets, HAL’s shares reacted positively in the stock market, gaining around 3-4% due to investor optimism about the company’s prospects and increased production orders.