Defence ministry floats ₹1 lakh-crore tender to buy medium transport aircraft
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.
The Indian defence ministry has issued a ₹1 lakh crore tender to purchase up to 60 medium transport aircraft (MTA) for enhancing the Indian Air Force's (IAF) airlift capabilities. The tender was awarded to five Indian companies, including Tata Advanced Systems Limited, Mahindra Group, Adani Defence & Aerospace, Hindustan Aeronautics Limited, and Reliance Defence.
The IAF, the world's fourth largest air force, is seeking a new transport aircraft with a cargo capacity of 18-30 tonnes to meet its expanding airlift demands. Tata Advanced Systems has partnered with US firm Lockheed Martin, while the Mahindra Group has collaborated with Brazilian maker Embraer. The other two Indian firms have yet to announce their alliances for the MTA project.
This tender aligns with the government's 'Make in India' initiative to foster self-reliance in the defence manufacturing sector; the successful bidder will establish a production facility in India. India is anticipated to finalize significant contracts in the fiscal year 2026-27 to bolster the air force's combat capabilities, with these contracts including new transport planes, airborne early warning and control (AEW&C) systems, and 114 Rafale fighter jets.
France recently submitted a techno-commercial offer for the 114 Rafale fighter jets to the defence ministry, anticipating the commencement of negotiations for a ₹3.25 lakh crore government-to-government deal. In February, the Defence Acquisition Council cleared the acquisition of defence hardware worth ₹3.6 lakh crore, including 114 Rafale jets under the Multi-Role Fighter Aircraft programme.
The council's approval for the need of new fighter jets marked the initial step in the procurement process. Under the Multi-Role Fighter Aircraft model being considered, the Rafales will be manufactured in India by French aircraft maker Dassault Aviation and a local partner, with France supplying 20 Rafale jets in fly-away condition and the remaining being produced in India.
The IAF currently operates 36 Rafale fighter jets procured from France at a cost of ₹59,000 crore. Additionally, India has placed an order for 26 Rafale Marine fighter jets from France in April 2025, which will operate from its two aircraft carriers. The first deliveries of these Rafale Ms will begin in 2029 and conclude by 2031.
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