TATA, Mahindra and HAL compete for ₹1 lakh Crores IAF transport aircraft program
This initiative is part of a wider effort to replace the IAF’s ageing cargo aircraft fleet and strengthen its tactical and strategic airlift capabilities.
Officials have confirmed that Indian companies will play the lead role in the program, ensuring significant domestic participation in manufacturing.
Mahindra Defence has partnered with Brazil’s Embraer to offer the C-390 Millennium transport aircraft. TATA has joined forces with Lockheed Martin to propose the C-130, which is already in service with the IAF for special operations.
Hindustan Aeronautics Limited (HAL) is also in contention, with plans to collaborate with original equipment manufacturers to build the aircraft in India. This competitive field highlights the growing emphasis on joint ventures between Indian defence firms and global aerospace giants.
Under the program, around 20 per cent of the aircraft will be inducted in fly-away condition, while the remaining majority will be manufactured domestically. More than 60 per cent indigenous content is expected, covering structural assemblies, avionics, and systems integration.
HAL is expected to play a central role in ensuring that the aircraft are built in India through these joint ventures, thereby boosting local aerospace capabilities.
The Indian Air Force currently operates 12 C-130J Super Hercules aircraft, which have been deployed extensively for special operations, humanitarian missions, and tactical transport. In parallel, the IAF is working with Airbus on the C-295 transport aircraft program, with around 70 aircraft planned for induction. Most of these will be manufactured in India, further consolidating the country’s transport aviation ecosystem.
The tender for 60 transport aircraft comes alongside other major modernisation efforts. The IAF has already issued a tender for 114 Rafale fighter jets to expand its combat fleet. Additionally, plans are underway to induct more than 100 trainer aircraft to replace the Hawk jet trainers, thereby enhancing pilot training capacity in line with the growing number of fighter squadrons.
The new Medium Transport Aircraft (MTA) fleet may also be configured for aerial refuelling roles, expanding their utility beyond troop and equipment transport.
This would provide the IAF with greater flexibility in sustaining long-range operations and enhancing its rapid deployment capability across diverse theatres, including high-altitude regions and forward bases.
This tender represents one of the largest transport aircraft acquisition programs in India’s defence history. It underscores the government’s commitment to indigenisation, joint ventures, and strengthening the aerospace industrial base under the Aatmanirbhar Bharat vision.
The outcome of this competition between TATA, Mahindra, and HAL will shape the future of India’s military transport fleet for decades to come.
Agencies
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