Defence ministry floats ₹1 lakh-crore tender to buy medium transport aircraft

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The defence ministry on Wednesday issued a tender worth around ₹ 1 lakh crore to buy up to 60 medium transport aircraft (MTA) to boost the Indian Air Force’s (IAF) airlift capabilities, officials aware of the development said.

Political Context

The three other Indian firms have not yet announced partnerships to advance the project. The MTA contest aligns with the government’s Make in India initiative to boost self-reliance in the defence manufacturing sector; the winner will set up a production line for the planes in India. The council’s acceptance of the necessity for new fighters was the first step in the procurement process.

The IAF, the world’s fourth largest, is looking for a new transport aircraft with an 18- to 30-tonne cargo carrying capacity to meet its growing airlift needs. TASL has tied up with US firm Lockheed Martin, which has offered its C-130J Super Hercules aircraft for the MTA contest, and the Mahindra Group has teamed up with Brazilian plane maker Embraer, which has pitched its KC-390 Millennium aircraft to India. France recently responded to a letter of request (LoR) sent by the defence ministry with a techno-commercial offer for the 114 Rafale fighter jets sought by the IAF, marking the next step in a deal expected to be worth ₹ 3.25 lakh crore. The French government submitted its proposal to the defence ministry on July 29, paving the way for negotiations on the government-to-government deal to begin. In February, the Defence Acquisition Council (DAC)—India’s apex military procurement body—cleared the purchase of military hardware worth ₹ 3.6 lakh crore, including 114 Rafale jets under the MRFA (multi-role fighter aircraft) programme.

The tender has been issued to five Indian companies, including Tata Advanced Systems Limited (TASL), Mahindra Group, Adani Defence & Aerospace, Hindustan Aeronautics Limited and Reliance Defence, the officials said, asking not to be named.