Defence ministry floats ₹1 lakh-crore tender to buy medium transport aircraft

India's defence ministry has initiated a major procurement drive, issuing a tender valued at approximately ₹1 lakh crore (around $12 billion) to acquire up to 60 medium transport aircraft (MTA). This move aims to enhance the Indian Air Force’s (IAF) airlift capabilities, addressing growing operational demands. Officials familiar with the development confirmed the tender was floated on Wednesday, though they requested anonymity. The tender has been extended to five prominent Indian firms: Tata Advanced Systems Limited (TASL), Mahindra Group, Adani Defence & Aerospace, Hindustan Aeronautics Limited, and Reliance Defence. The IAF, currently the world’s fourth-largest air force, seeks aircraft capable of transporting cargo weighing between 18 and 30 tonnes. These planes will play a critical role in bolstering strategic mobility, enabling rapid deployment of troops and equipment across vast distances. The selection of MTA platforms is part of India’s broader strategy to modernise its armed forces and reduce dependence on foreign suppliers through the Make in India initiative. The winning bidder will establish a domestic production line, ensuring long-term self-sufficiency in this vital segment of military aviation. TASL has formed a partnership with Lockheed Martin, the American aerospace giant, to propose the C-130J Super Hercules. Meanwhile, the Mahindra Group has aligned with Brazil’s Embraer to submit the KC-390 Millennium. Both models are well-regarded for their versatility and performance in transport roles. However, the other three Indian firms have not disclosed potential international collaborators, leaving room for further developments in the coming months. This procurement effort fits into a larger pattern of significant defence acquisitions planned for the financial year 2026-27. Alongside the MTA acquisition, India is poised to finalise contracts for advanced airborne early warning and control (AEW&C) systems, as well as the remaining 114 Rafale fighter jets under the Multi-Role Fighter Aircraft (MRFA) programme. These purchases aim to strengthen India’s aerial superiority and readiness for both conventional and asymmetric warfare scenarios. Recent progress has been made in securing the Rafale deal. On July 29, the French government submitted a techno-commercial proposal in response to a letter of request (LoR) from India’s defence ministry. This marks a pivotal moment in negotiations for a deal estimated to be worth ₹3.25 lakh crore (about $40 billion). Earlier, in February, the Defence Acquisition Council (DAC) approved the procurement of military hardware valued at ₹3.6 lakh crore, including the 114 Rafale jets. This approval signalled the formal start of the procurement process. Under the MRFA framework, the Rafale jets will be produced in India through a collaboration between French manufacturer Dassault Aviation and a local partner. France is expected to deliver 20 aircraft in a ready-to-fly state, while the remainder will be assembled domestically. Talks have focused on integrating indigenous weapons systems and tailoring the jets to meet specific Indian operational requirements. India has already acquired 36 Rafale fighter jets from France at a cost of ₹59,000 crore (approximately $7.5 billion). Additionally, the country ordered 26 Rafale Marine variants for the Indian Navy in April 2025, which will be deployed from its two aircraft carriers. Deliveries of these naval versions are scheduled to begin in 2029 and be fully completed by 2031. With multiple high-profile procurements underway, India continues to focus on building a robust and technologically advanced military infrastructure. The MTA tender, along with the Rafale acquisition, underscores the nation’s commitment to enhancing its strategic reach and operational flexibility. As the procurement process unfolds, the selected manufacturers will need to demonstrate not only technical capability but also the ability to sustain large-scale production within India.