The Ministry of Defence has signed a Rs 62,370 crore contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A, including 68 fighters and 29 twin-seaters, along with associated equipment, for the Indian Air Force, according to an official statement issued on Thursday.

The delivery of these planes would commence during 2027-28 and be completed over a period of six years.

The aircraft will have an indigenous content of over 64 per cent, with 67 additional items incorporated, over and above the previous LCA Mk1A contract signed in January 2021. The integration of advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators will further strengthen the Aatmanirbharta initiatives, the statement said.

The project is being supported by a robust vendor base of nearly 105 Indian companies directly engaged in the manufacture of detailed components. The production is expected to generate close to 11,750 direct and indirect jobs per year for the duration of six years, giving a major boost to the domestic aerospace ecosystem.

The acquisition, under the ‘Buy (India-IDDM)’ category of Defence Acquisition Procedure 2020, is in line with the government’s thrust on indigenisation. The LCA Mk1A is the most advanced variant of the indigenously designed and manufactured fighter aircraft and will serve as a potent platform to meet the operational requirements of the IAF, the statement said.

The start of deliveries for the first two fully armed Mk 1As of the earlier order is considered a key factor for HAL securing its repeat order worth Rs 67,000 crore.

HAL announced earlier this month that it had received the third GE 404 engine from US tech giant General Electric (GE) Aerospace to power India’s Light Combat Aircraft (LCA) Mk1A.

The Bengaluru-headquartered defence PSU said that while the third GE 404 engine has been received, the fourth will be delivered by the US firm by the end of the month. Engine supply chain improvement will pave the way for LCA Mk1A deliveries, HAL said in a statement.

While at present HAL is operating two production lines in Bengaluru, it has started the third in Nashik to augment the production of the fighter jet. The current year is likely to see three to four aircraft being rolled out from Nashik; the annual production from the new plant will be stepped up to eight planes.

HAL Chairman and Managing Director D.K. Sunil earlier said that if GE delivers 12 GE 404 engines as assured by the US aerospace major, HAL will be able to produce 12 aircraft by the end of this financial year. HAL has placed an order of 99 GE 404 engines from the US engine manufacturer.