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New LCA deal after first jets delivered

Hindustan Times Delhi

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September 16, 2025

The defence ministry will sign a ₹66,000-crore contract with Hindustan Aeronautics Limited for an additional 97 light combat aircraft (LCA Mk-1As) as soon as the state-run firm hands over to the air force the first two of 83 such fighter jets already on order, and the new deal could be signed soon, HAL chief DK Sunil said on Monday.

- Rahul Singh

"We are getting the paperwork ready and hope to conclude the contract in October. The moment that is done, HAL can trigger other contracts related to the deal, including the contract for new engines," he said, referring to the $1 billion deal with US firm GE Aerospace for 113 F404-IN20 engines to power the new fighter jets. The engine deal is also expected to be signed in October.

The Cabinet Committee on Security, headed by Prime Minister Narendra Modi, cleared the deal to buy 97 more LCA Mk-1As in August. The intent is that the contract be signed after HAL starts deliveries under the first order, a senior defence ministry official said, asking not to be named. "Creating accountability is important and the ministry has conveyed this to HAL," he said.

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