New Delhi: The Indian Defence Ministry has informed a parliamentary committee that it will finalize several significant contracts during the financial year 2026-27. This includes the procurement of 114 Rafale fighter jets, up to 60 Medium Transport Aircraft (MTA), and additional Airborne Early Warning and Control (AEW&C) systems to enhance the capabilities of the Indian Air Force (IAF).

The ministry noted a 37.03% increase in the IAF’s capital budget relative to estimates for 2025-26. The allocated funds are intended for several key projects, including the multi-role fighter aircraft initiative, combat enablement systems such as AEW&C and Tejas MK1A, the MTA program, and medium-altitude long-endurance remotely piloted aircraft, while also addressing ongoing commitments.

Proposed Costs and Manufacturing Plans

In February 2023, the Defence Acquisition Council (DAC) approved the proposed purchase of 114 Rafale jets, which falls under the Multi-Role Fighter Aircraft (MRFA) program. This deal, along with other military hardware, is estimated to cost approximately Rs 3.25 lakh crore. The new Rafales will be produced in India in collaboration with French firm Dassault Aviation, which will partner with an Indian entity for local manufacturing.

The parliamentary committee has emphasized the importance of utilizing allocated funds for modernizing the armed forces, particularly in light of current geopolitical developments. The report encourages the air force to effectively engage in both modernization and technological advancements in armament and the acquisition of essential platforms.

Medium Transport Aircraft to Replace Aging Fleet

The Defence Acquisition Board has recently approved a strategy for procuring 60 Medium Transport Aircraft for the IAF, with an estimated cost of Rs 1 lakh crore. This initiative aims to replace the aging An-32 fleet, which requires 12 aircraft to be delivered in fly-away condition and the remaining 48 to be produced locally. Leading contenders for the contract include the Embraer C-390 Millennium, Lockheed Martin C-130J Super Hercules, and the Airbus Defence and Space A-400M.

The ministry highlighted the significance of critical combat enablers, such as AEW&C systems, flight refueling units, and advanced electronic intelligence and surveillance platforms. These assets are crucial for strengthening intelligence and battlefield communication, providing commanders with essential information for modern warfare operations, and enhancing the combat capabilities across all three military services.

Focus on Self-Reliance and Innovation

During discussions, the committee received information about the IAF’s commitment to achieving self-reliance and its support for national objectives. To further this goal, the IAF has established a new Directorate of Aerospace Design (DAD), which will collaborate with industries, research and development institutions, and academic entities. This initiative aims to identify innovative technologies in the aerospace sector and convert them into tactical and strategic solutions utilizing domestic resources.

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