India's Light Combat Aircraft Deal About To Be Finalized

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India's Light Combat Aircraft deal to be finalised

On 17 february 2020, it was made public that state-run Hindustan Aeronautics Ltd (HAL) agreed on the overall costs picture of USD 5,5 billion for the Bharatiya Vayu Sena (Indian Air Force) for acquiring 83 single-seat Tejas Light Combat Aircraft Mk1A jets. The deal, which includes a complete support package, has been negotiated for over a year.

The deal is reported as the biggest deal in the Indian military aviation sector. The Ministry of Defence (MoD) and the Indian Air Force were initially shocked at the 'exorbitant price' being demanded by HAL to produce the 83 Tejas Mark-1A jets along with the maintenance and infrastructure package. With the deal now being slashed from USD 8 billion to USD 5,5 billon, the procurement file is being sent to the Cabinet Committee on Security (CCS) for the final nod. This should be cleared before this fiscal year ends on 31 March 2020. Once the contract is inked, HAL promises to start deliveries of the Tejas Mk1A in three years.

Going a little bit back in the Tejas history, the Defence Acquisitions Council had first approved the procurement of 83 Tejas Mk1A aircraft at a cost of USD 7 billion in November 2016. But at hat time, Hindustan Aeronautics Ltd (HAL) had responded with a quote of around USD 8 billion, which led to protracted cost negotiations. According to a source, Hindustan Aeronautics Ltd (HAL) for instance, was even charging profit on imported components. Item by item, the cost was brought down. The Indian Air Force also cut down some of its support requirements.

However, the slow production rate of the Tejas fighter aircraft remains a major concern for Indian Air Force. The 'Flying Daggers' (45 Squadron) at Sulur AFS has till now inducted only 16 of the original 40 Tejas Mk1 fighter aircraft, which were all slated for delivery by December 2016 under two contracts. The Tejas Mk1A aircraft are slated to have 43 "improvement" over the Mk1 jets to improve maintainability, AESA (active electronically scanned array) radar to replace existing mechanically-steered radar, air-to-air refuelling, long-range BVR (beyond visual range) missiles and advanced electronic warfare to jam enemy radars and missiles. The flight testing for Tejas Mk1A is expected to be completed by 2022.

The overall LCA programme started in August 1983 with the aim to replace the ageing MiG-21s. See the fact sheet for more details on the overall time line.

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