HAL to provide IAF with 83 Tejas fighters in Rs 39,000 crore deal
NEW DELHI: The biggest deal in the indigenous military aviation sector has been finalised, with the overall cost of IAF acquiring 83 single-engine Tejas fighters and their support package from defence PSU Hindustan Aeronautics Limited (HAL) being slashed from the earlier around Rs 56,500 crore to Rs 39,000 crore.
The over Rs 17,000 crore reduction in overall cost has come after hard-nosed negotiations spread over a year. The defence ministry and IAF were initially shocked at the “exorbitant price” being demanded by HAL to produce the 83 Tejas Mark-1A jets along with the maintenance and infrastructure package.
“With the contract price now settled at Rs 39,000 crore, the procurement file is being sent to the Cabinet Committee on Security for final nod. It should be cleared before this fiscal ends on March 31. Once the contract is inked, HAL promises to begin deliveries of the Mark-1A jets in three years,” said a source.
