India’s Defence Ministry has floated a tender worth around Rs 1 lakh crore for up to 60 medium transport aircraft, in a major push to strengthen the Indian Air Force’s airlift capabilities.
The tender has been issued to five Indian companies — Tata Advanced Systems Limited (TASL), Mahindra Group, Adani Defence & Aerospace, Hindustan Aeronautics Limited and Reliance Defence — officials aware of the development said.
IAF seeks aircraft with higher cargo capacity
The Indian Air Force is looking for medium transport aircraft capable of carrying between 18 and 30 tonnes of cargo. The proposed acquisition is aimed at meeting the IAF’s growing airlift requirements.
The programme also fits into the government's Make in India push for greater domestic defence manufacturing. The company selected for the project will be required to establish a production line for the aircraft in India.
TASL has partnered with US defence major Lockheed Martin, which has offered its C-130J Super Hercules for the competition. Mahindra Group, meanwhile, has joined hands with Brazilian aircraft manufacturer Embraer, which has pitched its KC-390 Millennium.
The other three Indian companies have not announced their international partners for the project.
Major defence deals lined up
The medium transport aircraft tender is part of a wider set of major procurements being pursued by the IAF during the financial year 2026-27.
Among the other key proposals is the acquisition of 114 Rafale fighter jets under the Multi-Role Fighter Aircraft (MRFA) programme.
France submitted a techno-commercial offer to the defence ministry on July 29, following India's letter of request. The proposed deal is expected to be worth around Rs 3.25 lakh crore, with negotiations on the government-to-government agreement now set to proceed.
The Defence Acquisition Council had cleared the procurement of military equipment worth Rs 3.6 lakh crore in February, including the 114 Rafale jets.
Rafale production planned in India
Under the proposed MRFA arrangement, 20 Rafale aircraft are expected to be supplied in fly-away condition, while the remaining jets would be manufactured in India by Dassault Aviation and an Indian partner.
India already operates 36 Rafale fighter jets acquired from France under a Rs 59,000-crore deal.
The Navy has also ordered 26 Rafale Marine aircraft, with deliveries under the Rs 63,000-crore contract scheduled to begin in 2029 and conclude by 2031.