Exclusive: Rs 1.09 lakh-crore HAL-IAF Tejas Mk-1A deal may see contract change; here's why

A Rs 1.09 lakh-crore deal between Hindustan Aeronautics Limited -- a Maharatna CPSE -- and the Indian Air Force for 180 HAL Tejas Mark 1A fighter jets may undergo significant contractual changes, as the company has not been able to deliver the aircraft in line with the original Request for Proposal (RFP) specifications, sources told Zee Business.

According to a source involved in the development programme, HAL’s new CMD recently met senior IAF officials involved in fighter aircraft procurement and sought one more month before the critical review meeting, which was originally scheduled for the first week of May. The review meeting is now expected to take place in the second or third week of June.

Another person closely associated with the production and development of the Tejas Mk-1A said the delays are primarily linked to integration challenges involving the aircraft’s radar system of Israeli origin, which is not performing according to operational requirements. The source added that the weapons package and Electronic Warfare (EW) suite are also yet to achieve certain technical specifications that HAL had earlier committed to deliver.

A senior-level source in the IAF told Zee Business, “We wanted an aircraft that is war-worthy, not just an aircraft that can fly.”

Meanwhile, a source in the Ministry of Defence said that since HAL has not been able to develop the fighter aircraft according to the original RFP specifications, the existing contract may now have to be revised and modified accordingly.

HAL was originally expected to begin deliveries of the Tejas Mk-1A in 2024. However, deliveries have now been delayed by nearly two years, with the Air Force yet to accept the aircraft due to unresolved issues related to radar performance, weapons integration and the EW suite.

The IAF has placed orders for 180 Tejas Mk-1A fighter jets in two phases — an initial order of 83 aircraft in 2021, followed by a second order of 97 aircraft in 2025. The total value of the programme stands at ₹1.09 lakh crore.

Zee Business had sent an email query to HAL at 4:30 pm on May 11 and also followed up with HAL’s corporate communications team. However, at the time of publishing this report, HAL was yet to respond to the queries.