HAL, Tata and Mahindra in Race for ₹1 Lakh Crore IAF Transport Aircraft Tender
The Ministry of Defence has issued a tender worth an estimated ₹1 lakh crore to procure 60 multirole transport aircraft for the Indian Air Force, setting in motion one of the service’s most important transport modernisation projects in recent years as it looks to renew an ageing fleet and expand strategic airlift capacity.
The programme is expected to be driven by Indian industry, with Hindustan Aeronautics Limited, Tata and Mahindra among the domestic firms involved in the competition. The aircraft are to be offered through tie-ups between Indian companies and global original equipment manufacturers, reflecting a procurement approach that seeks both capability enhancement and a larger manufacturing base within India.
Among the partnerships already taking shape, Mahindra Defence has teamed up with Brazilian aerospace company Embraer to offer the C-390 Millennium. Tata, meanwhile, is expected to join hands with Lockheed Martin to pitch the C-130J Super Hercules. The C-130J is already in Indian Air Force service and is used for specialised transport and special operations tasks, making it a familiar platform within the force’s existing inventory.
The tender structure points clearly to a domestic manufacturing push. Around 20 per cent of the aircraft are expected to be supplied in fly-away condition, while the remaining fleet would be built in India. The programme also envisages more than 60 per cent indigenous content, a requirement that could significantly deepen local aerospace production and widen the defence industrial ecosystem supporting military aviation.
The proposed model is expected to rely on joint ventures involving Indian companies, original equipment manufacturers and HAL. Such an arrangement would go beyond final assembly, potentially opening the door to production of critical aircraft components in India and helping strengthen aerospace supply chains that are essential for long-term maintenance, upgrades and future programmes.
For the Indian Air Force, the acquisition is aimed at building additional capacity for transporting troops, equipment and cargo over long distances. The service already operates 12 C-130J Super Hercules aircraft, which have been used extensively for strategic airlift and specialised missions. A new 60-aircraft multirole fleet would substantially add to that capability and give the IAF greater flexibility across a wide range of operational requirements.
The role envisaged for the new aircraft goes beyond routine cargo movement. In addition to conventional transport duties, the platforms could also be considered for aerial refuelling roles, potentially enabling them to support fighter aircraft during extended operations. That would make the programme relevant not only for airlift, but also for broader combat-support missions.
The transport aircraft tender comes at a time when the IAF is pursuing multiple parallel modernisation efforts across its fleet. Alongside this programme, the Air Force is moving ahead with plans to procure 114 Rafale fighter aircraft under its fighter modernisation roadmap. It is also looking to acquire more than 100 trainer aircraft to replace its ageing Hawk trainer fleet and expand training capacity for pilots.
Transport aviation is itself undergoing a wider expansion. The IAF is already adding capability through the Airbus C-295 programme, under which around 70 aircraft are planned for induction. Most of those C-295s are to be manufactured in India, making that project another key pillar of the country’s effort to establish itself as a major centre for military aircraft production.
Viewed together, the C-295 induction and the proposed 60-aircraft multirole transport programme show a clear effort to broaden the IAF’s ability to move personnel, military stores and equipment quickly across India’s varied geographical and operational environments. Greater transport capacity is especially important for a force that must support missions across long distances and diverse terrains while maintaining readiness for both routine and specialised operations.
The industrial dimension of the new tender is equally significant. By insisting on substantial indigenous content and local manufacturing for most of the fleet, the government is aligning the programme with its wider push for self-reliance in defence production. If implemented on the proposed lines, the project could generate major opportunities not only for large players such as HAL, Tata and Mahindra, but also for domestic suppliers that would feed into the production chain.
The contest now taking shape between Indian firms and their foreign partners is likely to make the multirole transport aircraft acquisition one of the most closely watched defence aviation programmes in the country. Beyond replacing ageing aircraft, it is positioned as a long-term investment in the IAF’s airlift and combat-support capability, while also advancing India’s ambition to build a stronger defence aerospace manufacturing base at home.
