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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 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.
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. 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. 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.
India is likely to conclude several big contracts in the financial year 2026-27 to sharpen the air force’s combat edge, including deals for the new transport planes, additional airborne early warning and control (AEW&C) systems, and 114 Rafale fighter jets.
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 council’s acceptance of the necessity for new fighters was the first step in the procurement process.
Under the MRFA model being considered, the Rafales will be made in India by French plane maker Dassault Aviation and a local partner. France is expected to supply 20 Rafale jets in fly-away condition while the remaining will be made in India. Discussions have been held with France regarding the localisation of the Rafales to be manufactured in India, the integration of local weapons and other India-specific requirements.
The IAF already operates 36 Rafale fighter jets bought from France at a cost of ₹59,000 crore. Also, India ordered 26 Rafale Marine fighter jets from France in April 2025 for the navy, which will operate them from its two aircraft carriers. The first deliveries of the Rafale Ms under the ₹63,000-crore contract will take place in 2029 and be completed by 2031.
