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October 28, 2025

Israeli company may sign Rs 8000 cr deal with IAF for mid-air refuelling aircraft

The CSR Journal Magazine

The Indian Air Force (IAF) is reportedly planning to sign a deal worth around Rs 8,000 crore to procure six mid-air refuelling aircraft from Israeli government-owned company Israel Aerospace Industries (IAI). If the deal is finalised then the Israeli firm would modify six old and second-hand Boeing 767 commercial planes to turn them into tanker aircraft and then supply them to the Indian Air Force, as reported by news agency ANI.

The IAI has emerged as the resultant single vendor in a competitive bid where it has agreed to the need for around 30 per cent Made in India content through offsets involved in the deal, as per reports. According to defence sources, Russian and European firms were also being considered for the same but these companies failed to meet India’s technical and ‘Make in India’ requirements. Russian and European firms which had also participated initially, failed to meet key conditions, including the mandate for 30% indigenous content in second-hand aircraft, as per reports.

What is Boeing 767 commercial plane?

The Boeing 767 is a twin-engine, wide-body airliner that has been in service since 1982 and is used for both passenger and cargo flights. Key variants include the passenger versions 767-200, 767-300, and 767-400, with the extended-range (ER) versions offering greater fuel capacity and range. The 767-300ER is the most popular variant, and the 767-300F is a dedicated freighter version.

What is Israel Aerospace Industries?

Israel Aircraft Industries, now known as Israel Aerospace Industries (IAI), is Israel’s major government-owned aerospace and defence manufacturer. It produces military and civilian systems for air, land, sea, and space applications. The company is a key pillar of Israel’s defence technology and a significant exporter of military hardware.

If contract is finalised, then IAI will convert six pre-owned Boeing 767 commercial aircraft into aerial tankers before delivering them to the Indian Air Force.

IAF operating six Russian-origin Il-78 refuelling aircraft but facing challenges

The Indian Air Force (IAF) operates a fleet of six Russian-origin Ilyushin Il-78MKI mid-air refuelling tanker aircraft, known by their call sign “Midas”. These Il-78MKI tankers, based at Agra, were acquired from Uzbekistan in 2003-2004. They serve as a crucial force multiplier, extending the operational range and endurance of the IAF’s various fighter aircraft.

The Il-78s are critical for extending the operational range and endurance of various IAF and Indian Navy fighter jets, such as the Su-30MKI and Rafale. Each tanker can refuel up to three fighter jets at the same time using the probe-and-drogue method. The aircraft have a fuel capacity of up to 110 tonnes.

The IAF’s Il-78 fleet has consistently faced serviceability issues. A Comptroller and Auditor General (CAG) report from 2017 found that only three or four of the six tankers were typically operational at any given time. The aircraft suffer from chronic maintenance problems, including issues with the refuelling pods.

The availability of spare parts has been a persistent issue, further impacting the serviceability rate. The situation has been exacerbated by the conflict between Russia and Ukraine, which has created more complications in sourcing components.

For over 15 years, the IAF has made multiple unsuccessful attempts to acquire additional refuelling aircraft to boost its limited fleet. Previous tenders for new tankers have stalled due to cost, evaluation, and procedural hurdles. To address the immediate shortage, the IAF has resorted to wet-leasing a tanker aircraft for training purposes.

 

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