The Defence Ministry on Wednesday (August 12, 2026) issued a tender worth around ₹1 lakh crore for 60 multirole transport aircraft (MTA) for the Indian Air Force (IAF), in a major push to replace its ageing fleet of cargo and transport aircraft and expand its strategic airlift capability.

The tender has been issued to multiple Indian companies, including Hindustan Aeronautics Limited (HAL) and private sector defence majors, a senior Defence Ministry official said.

The programme is envisaged as an Indian-led initiative, with Indian companies partnering with global original equipment manufacturers (OEMs) to manufacture the aircraft in the country, the official added.

Mahindra Defence has tied up with Brazilian aerospace major Embraer to offer the C-390 Millennium, while Tata is partnering U.S. firm Lockheed Martin to offer the C-130J Super Hercules, which is already operated by the IAF for special operations.

Under the proposed programme, around 20% of the aircraft are expected to be inducted in fly-away condition, while the remaining aircraft would be manufactured in India. The domestically produced aircraft are expected to have more than 60% indigenous content and would be built through joint ventures between Indian companies and the OEMs.

Aerial refuelling

The MTA are expected to provide the IAF with enhanced capability to rapidly move troops, equipment and other military assets over long distances. The aircraft could also potentially be configured for aerial refuelling, providing the IAF with an additional tanker capability.

The IAF currently operates 12 C-130J Super Hercules aircraft, primarily for special operations and tactical airlift missions.

Separately, the force is inducting the C-295 transport aircraft under a programme involving Airbus and Tata, with around 70 aircraft planned for the IAF and the majority of them to be manufactured in India.

The MTA programme is part of the IAF’s broader modernisation drive amid concerns over its ageing transport fleet and the need to augment airlift capabilities.

The IAF has also issued a tender for 114 multirole fighter aircraft under its long-pending fighter modernisation programme. It is simultaneously looking to acquire more than 100 trainer aircraft to replace its ageing Hawk fleet and augment training capacity as the number of fighter squadrons is sought to be increased.

The proposed transport aircraft programme is also expected to deepen India’s domestic aerospace manufacturing ecosystem by bringing global OEMs into production partnerships with Indian companies and increasing indigenous content in military airlift platforms.

Published - August 12, 2026 09:37 pm IST