Air Force

IAF gets ₹1 lakh crore tender for 60 medium transport aircraft

The proposed fleet expansion will strengthen the IAF’s ability to move troops, equipment and supplies over long distances while creating a larger role for Indian industry in military aircraft production. Most of the aircraft are expected to be manufactured in India, with indigenous content exceeding 60 per cent.
IAF gets ₹1 lakh crore tender for 60 medium transport aircraft

An India-built Airbus C295 medium transport aircraft. (Airbus photo for representation)

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  • Published August 12, 2026 9:22 pm
  • Last Updated August 12, 2026

New Delhi: The Ministry of Defence has issued a tender for the acquisition of 60 medium transport aircraft (MTA) for the Indian Air Force, in a programme estimated at around 1 lakh crore. The procurement is aimed at strengthening the IAF’s transport fleet while expanding domestic production of military aircraft.

Around 20 per cent of the aircraft will be supplied in fly-away condition, meaning they will be delivered as completed aircraft. The remaining aircraft will be manufactured in India, with more than 60 per cent indigenous content.

The programme is expected to bring Indian companies into partnership with foreign aircraft manufacturers, with Hindustan Aeronautics Ltd (HAL) also involved. This would allow most of the aircraft to be produced in India.

The MTA programme is aimed at increasing the IAF’s capacity to move troops, equipment and supplies quickly over long distances. This would strengthen its ability to support military operations and deploy resources where they are needed.

The IAF currently operates 12 C-130J Super Hercules aircraft. It is also inducting C-295 transport aircraft under a separate programme, with around 70 aircraft expected to join the force and most of them to be manufactured in India.

The new MTA fleet would add another transport capability to the IAF. The aircraft could also be used for other roles, including aerial refuelling, allowing them to serve as tankers for other aircraft.

HAL, Tata and Mahindra are among the Indian companies that could participate in the programme. Mahindra Defence could partner with Brazil’s Embraer to offer the C-390 Millennium, while Tata could team up with Lockheed Martin to offer the C-130J Super Hercules, which is already operated by the IAF.

The C-130J is already in IAF service, while the C-390 is another medium transport aircraft being considered for the requirement. The selection of the aircraft has not yet been made.

The acquisition is part of a broader effort to modernize the IAF’s fleet. The force is also pursuing the acquisition of 114 Rafale fighter aircraft and is looking at more than 100 trainer aircraft to replace its Hawk trainers and expand its pilot-training capacity.

The MTA programme would strengthen the IAF’s transport and support capabilities alongside its combat aircraft modernisation. It also reflects the government’s focus on increasing domestic production, with most of the 60 aircraft planned to be manufactured in India.

The tender now begins the process of evaluating the competing aircraft and industry proposals. The final selection will depend on how the platforms and proposed manufacturing arrangements meet the IAF’s operational and production requirements.

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Written By
Anjali Manhas

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